The Federal Reserve unexpectedly refrained from reducing the $85 billion pace of monthly bond buying, saying it needs more evidence of lasting improvement in the economy and warning that an increase in interest rates threatened to curb the expansion.
Former Treasury Secretary Lawrence Summers withdrew from consideration to be chairman of the Federal Reserve, averting a confirmation battle that divided Democrats on one of President Barack Obama’s most important decisions.
After concern last summer of an imminent double-dip recession in the U.S., the data got a bit brighter in the fall. The economy grew faster than expected in the third quarter and has created almost 2.8 million private- sector jobs since the labor market bottomed in early 2010.
July 6 (Bloomberg) -- Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi UFJ, talks about the June U.S. employment report. Payrolls rose 80,000 last month after a 77,000 increase in May, Labor Department figures showed in Washington. Economists projected a 100,000 gain, according to the median estimate in a Bloomberg News survey. (Source: Bloomberg)