U.S.: The Fed Has an Inflation Expectations Problem When Federal Reserve policy makers were debating the adoption of an inflation target five years ago, the hawks pushed for a 1.5 percent goal as the best way to meet the central bank’s price stability mandate. Then-Chair Ben Bernanke and his lieutenant Janet Yellen resisted the arguments
Europe: Tame inflation comforts uneasy bond markets as ECB count down begins Euro zone government bond yields fell on Monday, as tepid inflation numbers lifted expectations of a cautious stance at this week's European Central Bank meeting. The ECB meets on Thursday, three weeks after comments from central bank chief Mario Draghi that were seen
U.S.: Second Straight Drop in U.S. Retail Sales Shows Tepid Spending Retail sales unexpectedly dropped for a second month in June, signalling consumers are providing only modest support for the U.S. economy, Commerce Department data showed Friday. Highlights of Retail Sales Purchases dropped 0.2% (forecast was 0.1% gain) after falling 0.1% the prior month (previously
U.S.: U.S. weekly jobless claims drop; producer prices unexpectedly rise The number of Americans filing for unemployment benefits fell last week for the first time in a month and producer prices unexpectedly rose in June, likely keeping the Federal Reserve on track for a third interest rate increase this year. Persistently low layoffs point to
U.S.: Fed's Yellen says economy steady enough for more hikes, bond wind down The United States is healthy enough to absorb further gradual rate increases and the slow wind down of the massive bond portfolio accumulated by the Federal Reserve during the financial crisis, Fed Chair Janet Yellen said in prepared testimony to be delivered
Europe: Merkel: ECB policy not yet back to where we want it The European Central Bank's monetary policy is not yet where Germany would like it to be, German Chancellor Angela Merkel said, after years of ultra-loose measures designed to keep the euro zone afloat. In a rare comment on the ECB's policy, which the
Europe: Euro zone bond yields stay near highs as policy trumps politics Euro zone bond yields stayed near recent highs as expectations on global growth and tighter monetary policy overshadowed any concerns prompted by a troubled meeting of world leaders over the weekend. Leaders from the world's leading economies broke with U.S. President Donald Trump
U.S.: U.S. Hiring Accelerates While Wage Growth Stays Flat U.S. hiring picked up in June while wage gains disappointed yet again, a mix that may continue to be a puzzle for the economy and policy makers, Labor Department figures showed Friday. HIGHLIGHTS OF EMPLOYMENT (JUNE) Payrolls rose 222k (est. 178k); April-May revisions added 47k jobs
U.S.: U.S. private hiring slows in June, weekly jobless claims rise U.S. private employers hired fewer workers than expected in June and applications for unemployment benefits last week increased for a third straight week, suggesting some cooling in the labor market as it nears full employment. The ADP National Employment Report showed on Thursday that
Europe: Euro Area Faces Capacity Bottlenecks as Recovery Gathers Pace Euro-area businesses are struggling to hire workers fast enough to meet increasing demand as the recovery strengthens. “Operating capacity is being strained despite the region seeing the best spell of employment growth for a decade,” said Chris Williamson, chief business economist at IHS Markit in
