Investors are preparing for a week of crucial economic data that could decide the Federal Reserve’s next move after Ben Bernanke, its chairman, said it would ease monetary policy if the outlook deteriorated “significantly”.
Non-farm payrolls data due on Friday – the most important indicator on the health of the US labour market and the economy – are expected to show that private-sector employers created only 42,000 jobs in August and the unemployment rate rose, according to economists surveyed by Reuters.
A sustained rise in unemployment is a likely trigger for the Fed to launch further quantitative easing by buying billions of dollars of long-term assets such as Treasury bonds in an attempt to stimulate the economy.