Focus turns to interest rates after worrying signs from labour market

The number of Americans filing new applications for unemployment benefits increased to an 11-month high, while job gains markedly slowed in July

The data cast doubts on Fed chairman Jerome Powell’s assertion directly after the latest policy meeting that the labour market appeared to be normalising gradually. File picture: Susan Walsh/AP

The global plunge in stocks on Monday puts a renewed focus in interest rates especially in the US.

The Federal Reserve kept its benchmark interest rate unchanged in the current 5.25%-5.50% range last week and signalled it was on course to begin cutting rates in September.