Bank of America stated that non-farm payrolls may not be the deciding factor for the interest rate hike in September, but still assesses a rate increase

As the bond market experiences significant fluctuations recently, investors are awaiting two sets of key U.S. data that may influence the Federal Reserve's decision: the non-farm payroll report for August to be released this Friday, and the August CPI data to be published on September 11.

However, according to Bank of America, these two pieces of data carry different weights in the Federal Reserve's meeting on September 15-16. The bank believes that the non-farm payroll report is more like an "appetizer," while the "main course" that will truly determine whether the Federal Reserve raises interest rates is the CPI.

Bank of America analysts stated on Wednesday: "The non-farm payroll is unlikely to be the decisive factor for a rate hike in September. A significantly weak report may reduce the likelihood of a rate hike, but the CPI remains the key data in determining whether the Federal Reserve will follow through with a rate increase. We maintain our judgment for a rate hike in September." Unless there is a significant downside surprise in the non-farm data released on Friday, the employment report is unlikely to become the final deciding factor in the discussions at the September FOMC meeting. The bank particularly emphasized that inflation remains the primary concern for the current Federal Reserve.