Bank of America: The importance of July's CPI is higher than that of the employment report, and it still expects the Federal Reserve to initiate interest rate hikes in September.

Bank of America stated in its latest research report that the July employment report is slightly "dovish" overall, but it is not enough to change the Federal Reserve's policy path. The upcoming July Consumer Price Index will become a more important policy signal. The bank maintains its forecast that the Federal Reserve will start raising interest rates by a cumulative 75 basis points beginning in September.