This is a partial measure that could anticipate a rate cut by the Federal Reserve in September.
The The number of people filing for unemployment benefits in the United States fell more than expected last week, a fact that the market interprets as a signal of the real economy that opens the door to a future Federal Reserve interest rate cutsThe American economy shows signs of growth with a reduction in inflation.
Initial applications for grants recorded a drop of 17,000 profits to 222,000seasonally adjusted, for the week ending July 6. That was the lowest level since late May, the Labor Department reported Thursday. The market had expected claims to fall to 236,000.
In May There were 1.22 job offers for every unemployed persona figure not much higher than average of 1.19 in 2019. The unemployment rate rose to a 2-1/2-year high of 4.1% in June from 4% in May. Claims have been stuck at the upper end of their range of 194,000 to 243,000 this year since June.
Encouraging data
The U.S. Bureau of Labor Statistics reported that lUS inflation fell to 3% annually in Junean encouraging sign for the Federal Reserve, which will now have to debate how quickly to cut interest rates from their highest level in 23 years. Markets had expected a 3.3% cut
The president of the Fed Chairman Jerome Powell this week flagged risks to the labor market, telling lawmakers that “we’ve seen considerable weakening.” Financial markets believe this, together with easing inflationary pressures, opens the door for the US central bank to begin cutting rates in September.
The The Federal Reserve has kept its benchmark overnight interest rate in the current range of 5.25% to 5.50% since last July.. It has raised its official interest rate by 525 basis points from 2022 to control inflation.
The number of people receiving benefits after an initial week of aid, a proxy for hiring, fell 4,000 to a seasonally adjusted 1.852 million during the week ended June 29, the report showed.
Although Argentina is outside the global markets, the economic team has to prepare the ground for the return to voluntary placements, So both the country risk and the 10-year Treasury bond rate will begin to be a reference for local operators.
Source: Ambito
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