Jerome Powell in virtual meeting

What can we takeaway from the Jackson Hole symposium?

This week the Federal Reserve announced its plans for an important shift in its strategy to manage inflation. The central bank will not increase interest rates in response to low unemployment levels and will not worry as much about low interest rates triggering inflation. This was insinuated by a statement Fed chair Jerome Powell made,

US NYC street

1.763m in July non-farm payrolls beats estimates although recovery slows

The US Bureau of Labour statistics announced non-farm payrolls growth of 1.8m in July, beating consensus expectations for 1.6m, although it suggests a slowing labour market recovery following June’s gain of 4.8m. Markets took the news with mild positivity with S&P 500 e-mini futures moving higher by about 20bps, while yields on US 10 year

Nevada remains the worst affected as US initial jobless claims declines to 1.186m

The latest jobless claims figures from the Department of Labour shows initial claims filed during the week ending 1st August declined to 1,186,000, beating consensus expectations for 1,432,000. S&P 500 and Nasdaq futures creeped higher on the news, erasing their pre-market losses, while the yield on the US 10-year treasury ticked higher by about 1bp.

Las Vegas sign

US initial jobless claims holds firm at 1.4m as continuing claims reverses higher to 17m

Although initial US jobless claims were better than the median forecast of 1.45m, this week’s print of 1,434,000 represented an increase of 12,000 on last week’s revised figure. The message is clear. The US economic recovery is sputtering and stalling and needs an injection of stimulus soon. The top three largest rises in initial claims

Skyscrapers in Philadelphia

Labour market recovery progresses as continuing jobless claims collapses by over 1m

Economists and analysts had been expecting this week’s initial jobless claims figure to remain the same as last week’s 1.3m, however, today’s jump to 1,416,000 missed by a wide margin. The initial claims data adds to pressure on legislators to pass a new stimulus package ahead of the summer recess, so as to ensure the

Clothing store in the US

US retail sales and continuing jobless claims beats forecasts

The Federal Reserve’s beige book (a report published eight times a year providing commentary on current and future economic conditions based on survey responses from key business contacts, economists, market experts, and other sources) set the tone for this week’s positive economic data out of the US. The report found activity had increased in each

US non-farm payrolls smashes consensus for 2nd month in a row

Today, the US Bureau of Labour Statistics’s data showed that 4.8m Americans found work in the month to 12 June, whilst last month’s release was revised upwards to 2.7m from 2.5m. The report significantly cleared consensus expectations of jobs growth of 3m and caused European stock bourses to surge almost 1% higher in reaction to

US initial claims falls by 60k to 1.48m although California experiences a surge

Data released at 08:30(EST) by the US Department of Labor showed new unemployment claims were 1.48m in the week ending 20th June. Despite these new claims, continuing unemployment claims fell by 767,000 to 19,522,000, marking a slow but steady return to work for Americans. This week’s new unemployment claims declined by 60,000 on last week’s

Fed announces interest rates will remain close to zero through 2022

During yesterday’s press conference, Federal Reserve chairman Jerome Powell made it clear that the United States’ central bank will continue to apply stimulus to its economy until its severely damaged labour market has recovered from the impact of the coronavirus. He stated the Federal Open Market Committee “aren’t even thinking about thinking about raising rates”,

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