by Calculated Risk on 8/27/2015 09:01:00 PM

A couple of excerpts from a Merrill Lynch research note, first on the possibility of a September rate hike, and second their forecast for August NFP:

Markets are now pricing a fairly slim chance that the Fed will hike in September, taking to heart the remarks by New York Fed President Bill Dudley midweek that liftoff in September looks “less compelling.” We think a more careful reading of Dudley’s comments suggests that September has not been ruled out. Meanwhile, Vice Chair Stanley Fischer speaks at Jackson Hole this weekend. His comments on inflation and the markets will be most noteworthy, and we expect him to suggest that September remains viable provided the data continue to cooperate and market volatility fades.

CR Note: a September rate hike is still on the table, and Fischer's talk on Saturday will be important.

Note: Saturday at 12:25 PM ET, Speech by Fed Vice Chairman Stanley Fischer, U.S. Inflation Developments, At the Federal Reserve Bank of Kansas City Economic Symposium, Jackson Hole, Wyoming

And from Merrill on August NFP:

Payrolls likely grew by a healthy 200,000 in August, not far from the 6-month moving average of 210,000. A pick-up in hiring in the household survey could also nudge the jobless rate down to 5.2% from 5.3% — a sign that labor market slack continues to diminish. Average hourly earnings should rise by a steady 0.2% mom, but softer base-year effects will take the yoy rate down a tenth of a percent to 2.0%.

Friday:
• At 8:30 AM ET, Personal Income and Outlays for July. The consensus is for a 0.4% increase in personal income, and for a 0.4% increase in personal spending. And for the Core PCE price index to increase 0.1%.

• At 10:00 AM, University of Michigan's Consumer sentiment index (final for August). The consensus is for a reading of 93.3, up from the preliminary reading of 92.9.