Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Wall Street Falls as Pandemic-Era Low in US Jobless Claims Triggers Fed's Taper Fears

Wall Street Falls as Pandemic-Era Low in US Jobless Claims Triggers Fed's Taper Fears

US stocks fell broadly for a fourth day in a row on Thursday after another Federal Reserve official advocated this week for a prompt taper of the central bank’s long-running economic stimulus.

The Dow Jones Industrial Average, the broadest equity barometer on the New York Stock Exchange that lists mostly industrial stocks, settled at 34,879, down 152 points or 0.4 percent on the day. The Dow has lost a cumulative 563 points, or 1.6 percent, over the past four sessions.

The S&P 500, which groups the top 500 US stocks, closed at 4,493, down 21 points, or 0.5 percent. The blue-chip indicator slid by 44 points or almost 1 percent over four trading days.

The Nasdaq Composite Index, which includes stocks of technology giants such as Facebook, Amazon, Apple, Netflix and Google, settled at 15,248, down 38 points, or 0.3 percent. The tech-heavy index slid 126 points, or 0.8 percent, over the past two sessions.

Stocks fell after Labor Department data showed US jobless claims rose by 310,000 last week but remained below the key 400,000 for a sixth straight week to mark a new COVID-19 pandemic-era low.

Wall Street has been under pressure since Wednesday after Federal Reserve Bank of New York President John Williams said it might be appropriate to start tapering this year the central bank’s stimulus for the US economy if inflation remains unbridled and the recovery from the pandemic stays on track.

Federal Reserve Governor Michelle Bowman was the second senior official of the central bank to think so on Thursday, saying US inflationary pressures were in line with the robust demand and constrained supplies in the economy, making a stimulus taper before the end of the year likely appropriate.

Bowman said the United States has achieved "significant progress" on price stability and is "quite close" to achieving its aim of full employment and it was "critical not to draw too many conclusions from a single month's shaky job market data." Ensuring maximum employment and manageable inflation are the Federal Reserve’s two mandates.


The Federal Reserve has been buying $120 billion in bonds and other assets since the COVID-19 outbreak of March 2020 to support the economy. The central bank has also been keeping interest rates at virtually zero levels for the past 18 months.

The Federal Reserve stimulus program is being blamed for aggravating price pressures in the United States, where economic growth for the second quarter of 2021 was estimated at 6.6 percent - above the 3.5 percent decline noted for all of 2020. The central bank itself has projected economic growth at 6.5 percent for all of 2021.

The Federal Reserve’s preferred gauge for inflation - the core Personal Consumption Expenditures (PCE) Index, which excludes volatile food and energy prices - rose 3.6 percent in the year through July, its most since 1991. The PCE Index including energy and food rose 4.2 percent year-on-year. The central bank’s own target for inflation is 2 percent per year.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
German Chancellor Friedrich Merz: “The Current Welfare State Can No Longer Be Financed”
HSBC Switzerland Ends Relationships with Over 1,000 Clients from Saudi Arabia, Lebanon, Qatar, and Egypt
Sharia Law Made Legally Binding in Austria Despite Warnings Over 'Incompatible' Values
Dutch Foreign Minister Resigns Amid Deadlock Over Israel Sanctions
Trump and Allies Send Messages of Support to Ukraine on Independence Day Amid Ongoing Conflict
China Reels as Telegram Chat Group Shares Hidden-Camera Footage of Women and Children
MotoGP Cameraman Narrowly Avoids Pedro Acosta Crash at Hungarian Grand Prix
Wizz Air passengers screamed as storm-battered flight diverts to Bologna
European postal services halt U.S. deliveries after Trump imposes new tariffs
Urban explorer finds abandoned luxury restaurant left to decay
Fidesz leader labels Péter Magyar a ‘bluffer’ amid escalating political spat
French rope park operator arrested for denying entry to Israeli children
Újpest thrashes Zalaegerszeg 4-1 to secure first win in five matches
Profit-margin cap costs retailers 13 billion forints a month, warns trade group
Curiosity rover finds coral-like rock on Mars hinting at watery past
U.S. green policy rollback drives investors to Europe’s sustainable finance market
Special funerals rise in Hungary: boat, aerial and forest burials gain popularity
Hungary’s Kiskunság region turning into semi-desert after extreme drought
Kopasz Bálint wins world kayak 1000 m title in Milan, making him triple world champion
Budapest’s Keleti railway station to close for four weeks for track overhaul
Balaton could be unfit for swimming by 2035 and dry by 2050, scientists warn
Leaked guidelines show Meta’s AI allowed flirty and racist interactions with children
Filming of ‘Emily in Paris’ halted after assistant director dies on set
Filipino guest workers sue after Hungary moves to deport them for pregnancy
Ukraine Declares De Facto War on Hungary and Slovakia with Terror Drone Strikes on Their Gas Lifeline
A monster hit and a billion-dollar toy empire
Animated K-pop Musical ‘KPop Demon Hunters’ Becomes Netflix’s Most-Watched Original Animated Film
Canada: Nurse Suspended and Fined 93 Thousand Dollars After Stating the World’s Most Well-Known Fact Since the Creation of Adam and Eve, That There Are Only Two Genders
Elon Musk tweeted, “Europe is dying”
Far-Right Activist Convicted of Incitement Changes Gender and Demands: "Send Me to a Women’s Prison" | The Storm in Germany
Hungary Criticizes Ukraine: "Violating Our Sovereignty"
Will this be the first country to return to negative interest rates?
U.S. Treasury Secretary Whitney Bessent Backs Stablecoins to Boost Treasury Demand
Spain to Declare Disaster Zones After Massive Wildfires
Three-Minute Battery Swap Touted as Future of EVs
Beijing Military Parade to Showcase Weapons Advances
×