Jobs Report Is More About Inflation, BlackRock's Rosenberg Says

Summary

Jeffrey Rosenberg discusses the August US jobs report, arguing it was strong but mainly shifts attention back to inflation. He says wage growth is no longer a major inflation threat as the labor market normalizes. The energy shock and its pass-through into headline and core inflation are the key factors that could push the Fed toward hiking in September.

• The August US jobs report was strong across the board.
• The report mainly refocuses markets on inflation rather than labor.
• Rosenberg argues wage inflation is not a major inflation driver.
• The energy shock is the key marginal inflation change this year.
• Energy pass-through could shift the Fed from cuts to hikes.
• The September Fed decision hinges on the inflation trajectory.