Market Wire, North America

315,000 jobs were created in the United States last month, and the unemployment rate climbed as participation levels rose – indicating that the labour market remains strong enough to withstand a three-quarter-point rate increase at the next Federal Reserve meeting, but also suggesting rates won’t have to climb quite as high in the longer term. According to data released by the Bureau of Labor Statistics this morning, the unemployment rate jumped to 3.7 percent in August, and the participation rate moved down to 62.4 percent from 62.1 in the prior month, indicating that workers are coming off the sidelines, attracted...

American households slowed spending last month as falling gasoline prices helped offset an increase in services outlays – and the Federal Reserve’s preferred inflation measure rose by less than expected. Data released by the Bureau of Economic Analysis this morning showed inflation-adjusted household outlays climbing 0.2 percent in July – roughly corresponding with a previously-reported flatlining in retail sales. A $33.3 billion increase in spending on services was partly offset by a $9.6 billion drop in spending on goods, with energy costs dragging the number down. In unadjusted terms, personal income rose 0.2 percent month-over-month, led by a solid 0.8...

The Federal Reserve rate-setting committee began considering an eventual deceleration in the pace of monetary tightening at its July meeting, aligning with comments made by Chair Jerome Powell during the post-decision press conference. A record of the discussion showed no concerns raised about the loosening in financial conditions that occurred ahead of the meeting, and appears to ratify the market reaction that unfolded when Mr. Powell said “it likely will become appropriate to slow the pace of increases”. Participants remained determined to bring inflation down to target, noting that price growth “remained unacceptably high”, with several expressing reservations about the...