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Significance
Weak employment data for July fired concerns that the Fed has waited too long to ease monetary policy. Concerns over the US economy had added to worries about a tech-stock bubble and the unwinding of the yen carry trade, roiling global markets.
Impacts
Japan’s ten-year bond yield fell sharply in the rush to safe assets; this could restrict Japan's scope to raise interest rates further.
Despite heightened Middle East stress, oil prices have lost 12% in the past month as investors worry more about a sharper global downturn.
The Fed will focus on inflation and employment in its decision-making, as per its mandate; recent data is supportive of a rate cut soon.
Keywords:
International,
LA/C,
NA,
United States,
economy,
bonds,
capital flows,
equities,
finance,
Capital markets
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2024
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