This month economists have focused on international concerns and their effect on our economy. Most importantly; the default crisis in Greece, China’s stock market fall back, and nuclear discussions with Iran. The federal reserve must keep a close eye on what is going on around the world before they make a decision to increase interest rates. The Fed is also closely monitoring our economic growth. In the second quarter, the preliminary number for economic growth came in at 2.3%. This is moderate growth but nothing spectacular. The Fed met at the end of July and indicated that they will raise rates when they see improvement in the labor market. July’s employment numbers showed an increase of 215,000 jobs and the unemployment rate remained constant at 5.3%. These are solid numbers but they may not be enough to entice the Fed to increase rates in September. We will have to wait and see.
Source: Origination Pro