The strong comments from the head of the USA central bank, the country's top financial regulator, adds to misgivings about the project, which has already produced strong skepticism among top policymakers across the globe.
Its really about managing expectations because any roadblock against the Fed cutting rates will be disastrous for the edifice that is risk markets, now at record highs.
Federal Reserve Chairman Jerome Powell, testifying for a second day before Congress, is delivering the same message: that the central bank is prepared to cut interest rates to support the economy, raising hopes that the first reduction in its key policy rate in a decade could happen later this month.
"He sent a pretty straightforward signal that they intend to lower interest rates, " said Ward McCarthy, chief financial economist at Jefferies LLC. Risk from severe weather events is not usually linked to banks but increasingly must be included in their planning, the USA central bank chief said July 11, 2019.
The market shrugged off slightly higher-than-expected consumer price data, released earlier.
Shelter costs, which make up about a third of total CPI, rose 0.3% on the month, as did owners-equivalent rent, one of the categories that tracks rental prices.
Some statistics of the June US CPI was comparable to May's CPI with food prices staying steady at 0.3% in May and in June.
Economists polled by Reuters had forecast the CPI unchanged in June and rising 1.6% year-on-year.
USA hedge fund billionaire charged with sex trafficking minors
However, the White House weighed in, saying the presidential administration was "looking into" Acosta's handling of the deal. In 1996, he changed his company's name to The Financial Trust Co and based it in the US Virgin Islands for tax purposes.
Will inflation statistics impact the Fed?The core PCE price index increased 1.5 percent year-on-year in May and has undershot its target this year. The Fed last month downgraded its inflation projection for 2019 to 1.5 per cent from the 1.8 per cent projected in March. "I will say that unequivocally, at the present time, yes, he is safe", Kudlow, Trump's top economic adviser, said at CNBC's Capital Exchange event.
"Most indicators suggest that inflationary pressures are benign - commodity prices are declining and the strong USA dollar is weighing on import prices and domestic goods prices", Levy said.
In Chinese stocks, mixed trends prevailed.
In another report on Thursday, the Labour Department said initial claims for state unemployment benefits declined 13,000 to a seasonally adjusted 209,000 for the week ended July 6, the lowest level since April. 10-year yields are down by 2.3 bps on the day to 2.039%, giving added impetus to the yen ahead of European trading.
"The labor market has not weakened in a meaningful way since the escalations in trade policy a few months ago", said Daniel Silver, an economist at JPMorgan in NY. Their biggest concern is that when businesses and consumers expect ultra-low inflation to remain in place, they factor it into decisions, such as how much they're willing to spend or raise pay.
Elsewhere, silver rose 0.2 per cent to US$15.27 per ounce, platinum gained 0.4 per cent to US$828.15. In Japan, the Nikkei 225 index climbed 0.5% to 21,643.53 and South Korea's Kospi advanced 1.1% to 2,080.58.