It was the 30th straight week that claims remained below the 300,000 threshold, which is usually associated with a strengthening labor market.
He expects to see further labour market improvement and robust consumer spending, and he says this will make the case that the U-S economy is strong enough to withstand an <strong>intereststrong> ratestrong> lift-off. The jobless rate fell to 5.1 per cent in August, and a new report that will be released on Friday is expected to show that it held steady last month, based on the median forecast in a Bloomberg survey of economists.
According to a report by the Institute for Supply Management (ISM), its index of national factory activity dipped to 50.2, which is its lowest level since May 2013.
But the Fed should begin to take away the proverbial punch bowl of easy monetary policy this year so that higher rates can start to slow the economy before it develops risky financial imbalances, San Francisco Fed President John Williams told reporters after a speech here.
If it were not for the global slowdown, he said, “we’d be growing way above trend”.
Ever since the Fed cited global growth concerns last month, to justify leaving its interest rates unchanged, Wall Street has been slipping lower on fears of a US slowdown.
Montana The stride of development at Simply.S. factories delayed in September, a proof the fact that the chill falling the global economy could puzzled the Federal Reserve’s projects to grow aprs.
The dollar fell to session lows against the euro and the yen after the manufacturing data was published, while yields on Treasury debt also declined. Wall Street stocks fell with substantial cuts.
The Labor Department said there were no special factors impacting last week’s claims. But Thursday’s job cuts report could put a dampener on these expectation.