BANK OF AMERICA SECURITIES: August Economic Data Could Alter September Fed Hike Outlook

According to Jin10, Bank of America Securities said market expectations for a September rate hike rose to nearly 60% after Fed Chair Kevin Warsh spoke on Friday, but the Federal Reserve's future tightening path may still depend on the August economic data due soon. Analysts said they could not yet say a rate hike was a done deal because very weak August data could still change the picture, but if there is no major downside surprise, the burden of a September hike would fall on Warsh. The August employment report is due this Friday, and July's employment report was notably weaker than analysts expected, prompting some economists to question the U.S. economy's underlying growth momentum.