BofA Securities said market-implied odds of a September Fed rate hike rose to
near 60% after Fed Chair Kevin Walsh’s Friday speech, but further tightening
still depends on August economic releases. Analysts cautioned a very weak August
print could reverse expectations; absent a sizable downside surprise, the burden
for a September hike falls on Walsh. The August employment report is due Friday;
July’s employment reading was noticeably softer than forecasts, prompting some
economists to question US potential growth.
