Last week, the number of Americans filing unemployment claims fell to a near six-year low. In July, consumer prices increased broadly which could draw the Federal Reserve closer to its move of trimming down its massive stimulus buying program.
On Thursday, a government report suggested accelerating job growth in early August. The same report hinted pockets of pricing power in the slow economy. The economic condition could ease issues among some Fed officials about low inflation.
The central bank of the United States said that it had plans of cutting the USD85 million bonds it is acquiring each month. The move was to keep the costs of borrowing low until late this year.
On the data, the yield on the benchmark 10 year US Treasury note increased to a two year high. Since June, the stocks on Wall Street also suffered their biggest slump. It was also affected by weak quarterly retail sales from Wal-Mart Stores. The dollar rose on a brief two-week peak against the euro.
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