Week Ahead – Nonfarm payrolls highlight a huge week | investing.com – Investing.com

Week Ahead – Nonfarm payrolls highlight a huge week | investing.com – Investing.com

Fears that the Federal Reserve might announce a slowdown of its massive asset purchases in August subsided this week after Chairman Powell stressed that the labor market still hasn’t recovered properly. The dollar moved lower in the aftermath as real US yields fell to new record lows, with the markets clearly pricing out the risk of an imminent taper.

That said, the overall message wasn’t so dovish. The Fed highlighted that the economy has made progress towards its goals and Powell even said “we are clearly on a path to a

labor market”. He also dismissed the Delta variant as being a major risk and suggested that inflation might head even higher in the near term, before cooling later on.