Some of the strongest action was in the bond market, where Treasury yields swung several times following the mixed economic data. While the reports added to evidence suggesting the US economy may avoid a deep recession, the strength could also be adding upward pressure on inflation.
A third report said prices getting paid at the wholesale level rose more last month than economists expected. That could be a discouraging signal for households if the higher-than-expected inflation gets passed on to shoppers at the consumer level.To try to get inflation back down to its 2 per cent target, the Federal Reserve has been increasing interest rates sharply.
The two-year Treasury yield, which more closely tracks expectations for the Fed, also bounced up, down and back again following the reports. It rose to 4.99 per cent from 4.98 per cent late Wednesday. Earlier, it briefly leaped above 5.02 per cent. “The Fed is still likely to remain on hold next week, but if the economy continues to surprise to the upside, all bets are off as to what they’ll do after their final two policy meetings of the year,” he said.
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: theage - 🏆 8. / 77 Read more »
Source: brisbanetimes - 🏆 13. / 67 Read more »
Source: smh - 🏆 6. / 80 Read more »
Source: brisbanetimes - 🏆 13. / 67 Read more »
Source: theage - 🏆 8. / 77 Read more »
Source: smh - 🏆 6. / 80 Read more »