Federal Reserve Bank of Chicago President Charles Evans said the U.S. job market is “doing better” thanks to record policy stimulus, while adding that he wants to see employment gains continue through the summer.
Treasury 30-year bond yields traded at almost a one-month high before the U.S. sells $16 billion of the debt today amid speculation yields at about 3 percent and falling inflation expectations may attract investors.
The number of Americans filing claims for jobless benefits unexpectedly dropped last week, and the average over the past month fell to the lowest level since before the last recession, showing employers have enough confidence in the economic outlook to hold onto workers.
Federal Reserve policy makers may shift discussion away from when to reduce monetary stimulus, given data showing the economy is weakening, according to Pacific Investment Management Co.’s Mohamed A. El-Erian.
Debate among Federal Reserve policy makers is shifting away from the timing of a reduction in bond buying to the need to extend record stimulus as inflation cools and 11.7 million Americans remain jobless.
The Treasury’s auction of $29 billion of seven-year notes attracted the highest demand this year as investors looked past a report on weekly jobless claims that pointed to an improving U.S. labor market.
Federal Reserve Bank of Chicago President Charles Evans said policy makers shouldn’t “obsess” over the possibility of future price increases, citing the Fed’s success in recent years in curbing inflation.