US firms see weaker employment growth as economy slows, Fed survey shows

(Reuters) -U.S. economic activity expanded more slowly from the middle of July through late August and businesses pulled back on hiring, signals that underscore why the Federal Reserve is set to begin to lower interest rates later this month. The U.S. central bank's latest temperature check on the health of the economy also showed that inflation pressures increased at a modest pace, with input costs viewed by all but one of the Fed's 12 districts as generally easing. "Economic activity grew slightly in three districts, while the number of districts that reported flat or declining activity rose from five in the prior period to nine in the current period," the Fed said on Wednesday in the survey known as the "Beige Book," which polled the business contacts of each regional Fed bank through Aug. 26.

Apple’s iPhone 16 launch is a big test for consumer AI

Bond Volatility in US to Eclipse Europe as Economy Cools

(Bloomberg) -- Bond traders are bracing for wilder market swings in the US than in Europe amid signs the world’s largest economy is faltering.Most Read from BloombergHow Air Conditioning Took Over the American OfficeHong Kong’s Arts Hub Turns to Selling Land to Stay AfloatThe Outsized Cost of Expanding US RoadsA measure of volatility in US rate markets over the coming month rose to the highest since July 2023 on a closing basis on Wednesday. The move came after data showed job openings fell to t

Fed rate-cut size this month to hinge on job market health

(Reuters) -Federal Reserve policymakers are increasingly attentive to the U.S. labor market as they prepare for a policy-setting meeting later this month, when their assessment of job-market health will be key to how big an interest-rate cut they deliver. Analysts largely expect the Fed to stick to a quarter-point reduction, given that employers have continued to hire although at a slower pace than before, and with the unemployment rate on the rise but still at a relatively low 4.3%. But data on Wednesday showing job openings in July fell to the lowest level in three and a half years may add to the sense that the job market may be nearing a tipping point, and could build the case for a larger rate cut.

Job openings fall to lowest level since January 2021

Job openings data released on Wednesday showed the labor market continued to cool in July as investors search for clues on how aggressively the Federal Reserve will cut interest rates in 2024.

Gas prices could drop to $3 by year-end, analyst says

Philadelphia Fed says it is looking for Harker successor

NEW YORK (Reuters) -The Federal Reserve Bank of Philadelphia said on Wednesday it is launching a search to replace its current leader, Patrick Harker, who will retire next summer. "We will run an open and inclusive nationwide search including broad input" from the Philadelphia Fed district, Anthony Ibarguen, CEO of Quench USA and chair of the Philadelphia Fed's board of directors, said in a press release. "Our goal is to find a new leader who will carry on President Harker's service to our communities and commitment to promoting a strong U.S. economy."

Bostic Says Risks to Fed’s Jobs, Inflation Goals Now in Balance

(Bloomberg) -- Federal Reserve Bank of Atlanta President Raphael Bostic said the central bank’s two mandates — stable prices and maximum employment — are now in balance for the first time since 2021, though he added he is “not quite prepared” to declare victory over inflation.Most Read from BloombergHow Air Conditioning Took Over the American OfficeHong Kong’s Arts Hub Turns to Selling Land to Stay AfloatThe Outsized Cost of Expanding US Roads“Though they have declined significantly, risks to me

Citi says 2025 oil prices could average $60/bbl without deeper OPEC+ cuts

Citi said that while a technical rebound was possible, the market could lose confidence in OPEC+ defending the $70/bbl level if the group doesn't commit to extending current output cuts indefinitely. If Brent prices fall into the $60s, financial flows could drive them down further, possibly to $50 per barrel before a potential rebound, the analysts at Citi said. Geopolitical tensions were initially expected to lift oil prices, but each rebound since October 2023 has weakened, Citi said.

Fed's Bostic warns against keeping restrictive policy stance for too long

"We must not maintain a restrictive policy stance for too long," Bostic said in an essay released on the regional bank's website. Waiting until inflation has actually fallen back to the Fed's 2% goal before reducing borrowing costs "would risk labor market disruptions that could inflict unnecessary pain and suffering," he said. Bostic added that recent price increase reports had bolstered his confidence that inflation is now on a sustainable path to return to the Fed's objective, with pricing pressures diminishing quickly and broadly.