Speaking at a conference in Israel, Federal Reserve board
Governor Frederic Mishkin said he currently sees an “upside
risk” to inflation expectations and that the Fed wants to contain those
expectations.
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Economists appear to be unanimous in their calls for increased
downside risk to Thursday’s BLS nonfarm payrolls report,
following a weaker-than-expected ADP private employment report for June.
ADP figures showed a decline of 79k jobs in the month against
expectations of only a 20k loss following three months of upside
surprises.
Employment data from the United States and the
Department of Energy’s weekly inventories report will highlight the North
American data on Wednesday as markets prepare for U.S. nonfarm payrolls
on Thursday. In the afternoon, markets will also be paying attention to
comments from Fed Governor Frederic Mishkin.
Mortgage rates continued to set record 2008 levels
with long term rates moving up slightly during the week ended June 26,
and short term rates increasing modestly but in double digits.
After last week’s highly-anticipated Federal Reserve rate decision, in
which rates were expectedly left on hold, markets have shifted their
attention to the upcoming European Central Bank rate decision on
Thursday.
This morning the Mortgage Bankers Association (MBA) announced that overall mortgage activity, which includes applications for a mortgage to both purchase and refinance a home, increased 3.6 percent last week compared to the week prior.