BofA Keeps Forecast for 75 Basis Points of Fed Rate Hikes This Year Despite Weak Jobs Report

U.S. nonfarm payrolls fell by 23,000 in July, and the prior two months' figures were revised down by a combined 103,000. Even so, Bank of America maintained its forecast that the Federal Reserve will raise interest rates by a total of 75 basis points this year.

Walter Bloomberg reported on August 7 that the U.S. unemployment rate fell to 4.1%, while wage growth slowed to 3.2%. The labor-force participation rate also declined.

BofA said inflation remains the Fed's top priority despite the weaker employment data. It expects the central bank to start raising rates in September and deliver a total of 75 basis points of hikes by year-end.