An economist said that the US Federal Reserve would most likely ease of its monetary stimulus next month. Wells Fargo Economist Sam Bullard told Reuters, "At least on the economic data front, the numbers are gradually improving and the plan that Bernanke laid out at the June FOMC meeting for potential tapering in the second half of this year still looks as though it's on pace. We're still in that September camp."
Data showed the US gross domestic product had expanded. A Reuters poll showed economists reckoning that the GDP had increased by 2.2 % from April to June due to the rise in net exports. This was higher than the initial growth estimate of only 1.7%.
July home sales also jumped last week, the highest increase in three years. The four-week moving average for new unemployed claims also dipped to an all-time low in almost six years.
Bullard said, "If the Fed goes for September, they have to have some faith that there'll be some resolution to these federal fiscal issues and that they won't throw their economic growth projections off course. It's not a slam dunk."
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