Wall Street heads into Friday's July jobs report with unusually little to hold on to, because the Federal Reserve under new chair Kevin Warsh has stopped telling markets where policy goes next. Economists polled by Dow Jones expect 83,000 new jobs and an unchanged 4.2% unemployment rate when the Bureau of Labour Statistics reports nonfarm payrolls at 8:30 a.m. in Washington, 1:30 p.m. in London. The print lands on a bond market already unnerved.
The nerves date to last week. The Fed held its target range at 3.50% to 3.75% on 29 July, a fifth straight hold, and Warsh again declined to signal anything about the path ahead. The 30-year Treasury yield climbed to 5.28% by Friday, a level last seen in 2006, and economists at Bank of America called the reaction 'consistent with a central bank inflation credibility shock.'
