-Janet Yellen, Fed Chair
The number of Americans who applied for unemployment benefits declined in the week ended July 11, coming in slightly better than expected. Initially jobless claims across the US economy fell to a seasonally adjusted 281,000 last week, down from a revised 296,000 reported in the previous seven-day period. It also marked the 19th consecutive month that claims remained below the 300,000 threshold, indicating improving labour market conditions. The four-week moving average of claims, a better measure of labour market trends as it strips out weekly volatility, rose 3,250 to 282,000 last week.
In the meantime, Fed Chairwoman said Thursday lifting interest rates too soon could threaten the ongoing recovery while waiting too long risks overheating the economy and raising inflation. In her testimony before the Senate Banking Committee, Yellen welcomed the progress in the labour market and the economy, and reiterated those improvements could result in the central bank hiking interest rates this year. Yet, the Chair avoided specifying the timing of the first benchmark rate increase from near zero, but said that the US central bank would raise rates in a "prudent and gradual manner". The Fed has kept its benchmark federal-funds rate near zero since December 2008 to support the economy through the financial crisis and uneven recovery.
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