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This will make the Fed wait to raise rates: Analyst

Markets eye jobs report for economic clues

A disappointing jobs report on Friday morning alone will not make the Federal Reserve wait to raise interest rates, but it will be part of a cocktail of data that could push back the decision, the senior economist at Bank of America/Merrill Lynch Global Research told CNBC.

A weak jobs number combined with gross domestic product (GDP) tracking for low 2 percent—even if there are special factors—could cause the Fed to hold off on hiking out of an abundance of caution, Michelle Meyer said.

"Our baseline is September. We're still pretty comfortable with that," she said in a CNBC "Squawk Box" interview. "But if the [jobs] data come in weaker, and inflation is low, I think they wait."

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Analysts expect the Bureau of Labor Statistics to report the U.S. employers added 240,000 jobs in February. Consensus estimates also see the unemployment rate ticking down to 5.6 percent from January's 5.7 percent.

Meyer said abnormally poor weather following a period of relatively mild conditions could create noise in Friday's report.

The recent data for jobs have been exceptionally strong, she said, noting the one-month moving average has been close to 250,000 jobs per month and the three-month moving average is above 300,000.

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That strength has established a disconnect between the labor market and GDP growth. The U.S. economy grew at 2.2 percent in the fourth quarter, according to the latest reading from the Department of Commerce.

Meyer noted that San Francisco Fed President John Williams and others have said the economy is stronger than what GDP reports suggest. The labor market numbers are more consistent with an economy growing at 4 percent, she said.

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