MORE EVIDENCE FOR MR. G TO RAISE 1/4 ONE LAST TIME?:
THIS FROM BLOOMBERG:
"First-time jobless claims rose 4,000 to a seasonally
adjusted 279,000 for the week ended July 31, the Labor Department
said. That's following the previous week's drop of 40,000 to
275,000. Even with the rise, last week's level was still the
second lowest in two years.
Moreover, The four-week average for new claims, which
smoothes out the volatile weekly data, fell to 295,000 last week
-- the lowest level since the week ended March 27 -- from a
300,000 the previous week.
''Any number below 300,000 indicates a very taut'' labor
market,'' said Lynn Reaser, an economist with Bank of
America Private Bank in Jacksonville, Florida. More important,
''this is going to make the Federal Reserve very nervous if
claims persist at these levels,'' said Suzanne Rizzo, chief U.S.
economist at Maria Fiorini Ramirez Inc. in New York.
Fed policy-makers have been watching to see
whether the economy is growing at pace that might accelerate
inflation, and the labor supply is one measure."
Here is the complete link:
quote.bloomberg.com
The stock market is fearing the 1/4 hike and asking if more is to come.
The bond market is already looking past this and realizes Mr. G's work is done raising rates one last time. Hence bonds are a screaming.
Best, J.T.
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