Goldman Sachs: Better-than-Expected Non-Farm Payrolls; Unexpectedly High CPI on Friday Could Turn Fed Hawkish

Odaily News According to Kay Haigh, an analyst at Goldman Sachs Asset Management, there are some initial signs of re-tightening in the labor market, but there is still a way to go before it is fully tight. Given the economy's continued outperformance of expectations, the FOMC's focus will shift to the inflation situation. We still believe the Fed has room for two more rate cuts this year; however, an unexpectedly high CPI reading on Friday could tilt the Fed in a more hawkish direction. (Jin10)