This week US economic data might show that the US employment situation is cooling but not falling off the cliff like the July NFP showed. We expect service sector to continue showing sustained strength as well as manufacturing to rebound from current lows. Hence, we expect Fed to act only on removing the policy restraints by 25*3 bps cut in the REMCY24. The Fedspeak calendar is light but impactful next week, with post-NFP speeches scheduled for NY Fed president Williams and Governor Waller on Friday, 6 September. The Fed enters its blackout period the following day, hence this will be a key opportunity for officials to manage market expectations ahead of the September FOMC meeting.
