Last week's mixed July jobs report raised the market importance of July inf,
analysts say. LPL Financial chief economist Jeffrey Roach said the Fed's rate
path will depend on how long inf stays elevated; with the labor market cooling,
inf could become the swing factor. A less certain inf outlook could support one
hike this year but makes multiple hikes unlikely. Vanguard analyst Hicklin said
July payrolls plus expected inf improvement bolster the case for the Fed to
leave rates unchanged through year-end. Recent data have shifted Fed focus
toward balancing labor-market signals and inf, increasing confidence
policymakers will hold rates this year.
