Some economists expect the Federal Reserve could be more aggressive than the market has expected, following July's surprisingly strong jobs report.
The economy added 528,000 jobs in July , more than double what was expected, and the unemployment rate even moved lower to 3.5% from 3.6%. Economists had expected job growth would have slowed from the prior month, and then continue easing in coming months. Wages were also worrisome for economists who expected to see a slowdown instead of a hotter number. Average hourly wages jumped 0.5% for the month and 5.2% from the same time a year ago. The Dow Jones estimate was for a 0.
" Bank of America economists tweaked their forecasts for Fed rate hikes, adding another quarter point in hikes this year. The economists had been expecting a 50 basis point hike in the fed funds rate for September, followed by a 25 basis point hike in November. They now expect a 50 basis point, or half point, hike in November as well. They left the forecast for a quarter point hike in December unchanged.
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