NFP and CPI Mix Complicate Fed Path: BNY

Strategists at BNY, John Velis and David Tam, point to the July Nonfarm Payrolls report and the upcoming Consumer Price Index data as critical for the Federal Reserve. They note that the consensus estimate for job additions is approximately 80,000.

According to their analysis, a breakeven level of roughly 50,000 jobs is needed to prevent a rise in the unemployment rate. The mix of labor market and inflation readings is seen complicating the Fed’s policy path.