On Friday, the Labor department will release the nonfarm payrolls report for September.
Advertisement
It was the 30th straight week that claims remained below the 300,000 threshold, which is usually associated with a strengthening labor market.
That meant a first interest rate increase at the Fed´s October policy meeting was possible.
The Institute for Supply Management (ISM) said its file of countrywide manufacturing unit endeavor reduced to 50.more than 2, its least because of the fact that May 2013 and merely under the norm research in a Reuters ballot.
If it were not for the global slowdown, he said, “we’d be growing way above trend”.
“On the global side, I’m not seeing any obvious signs that those risks that were on my mind and the minds of others, I don’t see signs that those have gotten worse”, Williams, a voting member on the Fed’s policy committee this year, said in Salt Lake City on Thursday.
After dismal reports from the US economy, the dollar dropped down to session lows against major currencies like the euro and yen.
The dollar drifted lower while yields on Treasury debt also declined. Wall Street stocks were trading lower.
In another report, the Labor Department said the number of new jobless claims grew modestly last week, although jobless claims still stayed near 15-year lows mark.
Taken together, Thursday’s data points to a split in the US <strong>economystrong> that is causing headaches at <strong>the Fedstrong>, where policymakers want to be sure overall economic <strong>growthstrong> will be strong enough to warrant hiking rates.
Advertisement
Despite the weakness overseas, America’s domestic economy and the labor market have appeared on more solid footing, which has boosted expectations the Fed could hike rates this year or in early 2016.
