Santander Bank: Despite Weak June Employment Data, Fed Will Still Focus on Inflation

Odaily Odaily Planet Daily News Evercore ISI stated, "Employment data is returning to normal, and the Fed will still focus on inflation." Economists believe that the Fed will view the weak June employment data as hiring figures returning to normal levels after unexpectedly strong growth in previous months. They said, "Some believe this report has significantly reduced the likelihood of a rate hike this year. We don't entirely agree with this view."

Santander Bank analyst Stephen Stanley echoed this sentiment. He stated, "Inflation data will determine the Fed's course of action." He believes that the June employment report may "slightly" alter the views of Fed officials, but he expects most policymakers will still consider the labor market stable. "There has been a considerable overreaction in financial markets, including a reduction in the probability of a rate hike this year. I believe the latter is an inappropriate response to this report." (Jin Shi)