Fed rate-cut size this month to hinge on job market health
Federal Reserve policymakers are increasingly attentive to the U.S. labor market as they prepare for a policy-setting meeting later this month.
Federal Reserve policymakers are increasingly attentive to the U.S. labor market as they prepare for a policy-setting meeting later this month.
Consumer spending increased solidly in July, arguing against a half-percentage-point interest rate cut from the Federal Reserve next month.
The U.S. Federal Reserve will cut interest rates by 25 basis points at each of the remaining three meetings of 2024.
A sharp slowdown in the U.S. job market that touched off days of global stock-market turmoil also fueled speculation the Federal Reserve may not wait until its next scheduled meeting.
U.S. job growth slowed more than expected in July, with the unemployment rate increasing 4.3%, leading to fears that the labor market is faltering and the economy is heading for a possible recession.
U.S. consumer prices fell for the first time in four years in June amid cheaper gasoline and moderating rents.
The Labor Department’s employment report also showed the economy created 111,000 fewer jobs in April and June than previously estimated.
The mixed survey also showed consumers’ perceived likelihood of a recession over the next 12 months retreated this month.
Big U.S. lenders are expected to show they have ample capital to weather any renewed turmoil during this week’s Federal Reserve health checks.
NFIB said its Small Business Optimism Index fell 0.9 point to 88.5 last month, the lowest level since December 2012.