Bank of America: Strong nonfarm payroll report could boost rate hike expectations

Golden Finance reports that on June 29, after three months of steady growth, U.S. Bank Securities expects non-farm payrolls to surge by 110,000 in June, mainly driven by a moderate level of initial jobless claims and strong ADP employment data. However, they also see downside risks. The spike in the leisure and hospitality sector in May may have been affected by the World Cup or Memorial Day. If it is the latter, then the employment data for June may see a pullback. They added, “A strong employment report could make the market more inclined toward our previously forecasted three rate hikes in 2026.”
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