Saving private payrolls

- Macro viewpoint: Saving private payrolls "Upward revisions to the saving rate suggest a faster pace of household rebalancing."
- Fed watch: Slippery slope
"Expectations for the Federal Reserve to step in with additional easing are growing, but we think it is a little too soon for the Fed to embark on a significant shift in its policy stance."
- The week ahead: All eyes on the FOMC
"All eyes will be on the Fed. The FOMC delivers its policy decision on Tuesday and even though the payroll report was a disappointment, we believe it was not such a disappointment that the Fed is about to reboot quantitative easing. In addition, we’ll be watching for consumer price inflation (CPI) and retail sales. On CPI, we expect a donut on core, which would take the YoY rate to 0.9% in July from 1.0% in June - well below the Fed's implicit target. On retail sales, we are expecting an auto-driven 0.4% increase on the headline. The core retail control measure, which strips out autos, gas, and building materials is also expected to rise 0.4%, which is consistent with a modest recovery in consumer spending from
the current pace."
Merrill Lynch US Economic Weekly 20100806

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