Monetary policy is in much better shape now with interest rates “at more appropriate levels than a year ago,” St. Louis Federal Reserve President James Bullard wrote in an analysis published on Thursday (6/1/2023).
Investors also digested a host of new economic data, which provided further insight into the US labor market. The labor market has been a closely watched sector given concerns that a tight situation could force the Fed to raise interest rates again.
Private companies in the United States added 278,000 jobs in May, surpassing economists’ expectations of 170,000, payroll data firm Automatic Data Processing (ADP) reported Thursday (6/1/2023).
The US Labor Department reported Thursday that new jobless claims rose to 232,000 in the week ended May 27, compared with the previous week’s revised level of 230,000.
The Federal Reserve will meet on June 14 and members appear to be divided over what action the Fed will take, said Kenny Fisher, senior market analyst at OANDA, a supplier of multi-asset online trading services.
“US economic data is solid, making it harder for the Fed to take a pause,” Fisher said.
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