Santander Bank: Despite weak June employment data, Fed will still focus on inflation

Odaily Planet Daily News Evercore ISI stated, "Employment data is normalizing, and the Fed will still focus on inflation." Economists believe 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 significantly reduces the likelihood of a rate hike this year. We don't entirely agree with this view."

Santander Bank analyst Stephen Stanley agreed with this perspective. He stated, "Inflation data will determine the Fed's course of action." He believes the June employment report might "slightly" alter the views of Fed officials, but he expects most policymakers still consider the labor market stable. "Financial markets have seen a considerable overreaction, including lowering the probability of a rate hike this year. I believe the latter is an inappropriate response to this report." (Jin Shi)