Home Intelligence Economic impacts in monetary policy
The FED is balancing unemployment and inflation pressures
Consumer prices rose 2.7% in July and core prices rose 3.1%.
The Fed’s first cut since December lowered its short-term rate to about 4.1%, down from 4.3%.
Consumer confidence index fell by 3.6 points to 94.2 in September, down from August’s 97.8.
Labor market softens
Revisions shaved 258,000 jobs off May and June payrolls.
Sharp downturn in U.S. hiring shook financial markets – Dow Jones dropped 1.5%.
Jobless claims rose by 7,000 to 226,000, slightly more than the 219,000 economists had forecast.
Homes and construction show strains on the economy
The average rate dropped to 5.69% from 5.71% last week.
Total construction spending has dropped 2.9% over the past year.
Report on gross domestic product showed that it grew at an annual rate of less than 1.3%.
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