"It all points to a relatively optimistic outlook"
- Lewis Alexander, U.S. chief economist for Nomura Holdings Inc.
U.S. private sector created more jobs than expected, adding to evidence that the U.S. job market is improving along with demand. According to a report from the ADP Research Institute, companies added 281,000 jobs in June, exceeding the most optimistic forecasts of economists, who had expected 200,000 new jobs, as the nation's economy seeks to regain steam after a harsh winter. Private businesses are employing more workers and limiting dismissals, bolstering economists' projections that the economy will rebound after a first-quarter contraction. Service-providing companies added 230,000 new jobs, while goods producers contributed 51,000. Meanwhile, today the Labor Department report may show private payrolls rose by 213,000 workers last month.
On Wednesday Janet Yellen, the Fed Head, delivered the most significant speech in her Fed chairmanship. She pushed back against the idea the U.S. central bank should consider hiking interest rates to prevent fueling future financial crisis. Her comments come as policy makers around the world discuss whether ultra low interest rates, adopted by many developed economies since the 2008 financial crisis to bolster economic recoveries, are feeding market bubbles, which could cause new financial turmoil. Yellen reassured the public that the Fed will not consider raising interest rates simply because some markets may look bubbly.
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