The number of new filings for unemployment benefits in the US fell last week, delivering another encouraging round of numbers for the economy, according to this morning’s release from the US Labor Dept. The news follows upbeat data for the labor market overall in August. Considering all the numbers to date reaffirms the view that business cycle risk remains low.
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The World Bank and two influential economists–Larry Summers and Paul Krugman–have joined the do-not-raise-rates club of doves. The Treasury market, however, is still expecting that the Federal Reserve will tighten monetary policy at next week’s meeting, according to the rate-sensitive 2-year maturity, which ticked up to a seven-week high of 0.75% yesterday (Sep. 9) via daily data from Treasury.gov.
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● Stock rally evaporates | Bloomberg
● Rising deflation risk for China | Reuters
● Chinese Premier: no hard landing for China’s economy | WSJ