Market Wire, North America

The Federal Reserve’s preferred inflation measure slowed as expected in May, bolstering odds on a rate cut before the November presidential election. Data released by the Bureau of Economic Analysis this morning showed the core personal consumption expenditures index rising just 0.1 percent in May from the prior month, matching market forecasts. On a year over year basis, core price growth fell to 2.6 percent, down from 2.8 percent in April, aligning with economist estimates. The overall personal consumption expenditures index flatlined relative to the prior month, rising 2.6 percent from a year ago. Personal income rose 0.5 percent month-over-month,...

The US job creation engine sped up in May, further diminishing odds on a rate cut before the November election. According to data released by the Bureau of Labor Statistics this morning, 272,000 jobs were added in the month, solidly overshooting the 175,000 consensus forecast, and remaining well above the 120,000 that is generally believed sufficient to mechanically offset net growth in the labour force. Revisions to prior months saw overall gains lowered by a total 15,000 positions. The unemployment rate ticked higher to 4 percent, breaking a 28-month stretch below the 4 percent threshold, and wage gains accelerated, exacerbating...