Soft July Job Numbers Won't Sway Fed

Still, the Aug. 7 statement is likely to acknowledge continued housing woes as well as increased volatility in the markets

The U.S. government's report on job growth for July—along with a closely watched survey of the service sector—showed some softness for two key components of the U.S. economy. A smaller than expected rise in the key nonfarm payrolls figure in the July jobs report will provide fuel for bond-market bulls to continue to focus on downside risks for growth as they look for acknowledgment—from the Federal Reserve's statement at its Aug. 7 policy meeting—of some signs of weakness in the economy.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.