In a news release, Fed officials said economic activity expanded as a modest pace and business fixed investment advanced. The Fed also said it will keep the central bank’s $85 billion-per-month bond-buying program in place.
For the soon to be released data on how the U.S. economy is measured, Jack Kleinhenz, chief economist of the NRF, notes major adjustments are planned that will increase the amount of final goods and services shown as produced in the economy.
The National Association of Manufacturers said the Census Bureau’s most recent report on new durable goods orders rose 4.2% in June, lifting it to an all-time high. NAM noted the jump in new orders was mainly attributable to increased aircraft sales.
The Commerce Department said orders to U.S. factories rose in May, helped by a third straight month of stronger business investment. The gains suggest manufacturing may be picking up after a weak start to the year.
The Wall Street Journal reported that sharp increases in long-term interest rates, triggered by Fed statements last week, threaten sales of homes, cars and other big-ticket items that have helped drive the recovery.