Markets resist a weakened labor market
Markets remain near all-time highs even as ongoing unemployment claims hit their highest levels since 2021.
Economic data released in the US has reinforced expectations that the Fed could start cutting interest rates again as early as September. Two official reports pointed to a slowdown in inflation and signs of a weakening labor market.
US producer prices rose 2.6% in May from a year earlier, slightly above April’s 2.5%, but data combined with the Consumer Price Index (CPI) suggest that the Fed’s preferred indicator – the Personal Consumption Expenditures (PCE) Price Index – is likely to have risen in line with its 2% target in May, although this figure will not be known until late June. US inflation rose just 0.1% in May, below forecasts.
Content reserved for subscribers. See the full article here . Edition of Jornal Económico , June 13.
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