The Federal Reserve is taking a bad jobs report to heart and dialing back expectations of an interest rate hike. The London Metal Exchange is seeing some volume for its scrap and rebar contracts.
Fed Puts the Breaks on Rate Hike Talk
Federal Reserve Chairwoman Janet Yellen affirmed Monday that the central bank won’t be raising short-term interest rates until new uncertainties about the economic outlook are resolved.
Her comments, delivered at the World Affairs Council of Philadelphia, echoed conclusions investors drew Friday after the release of disappointing job market data. Yellen and other officials still believe they will be gradually lifting rates because they expect the economy to improve. However, a rate increase at the Fed’s policy meeting next week is now effectively off the table.
LME Reaches Scrap, Rebar Milestones
In May, the London Metal Exchange‘s ferrous contracts saw new trading records, both in total and on individual days.
An all-time high of 990 lots of LME Steel Scrap traded on May 19th, while the rise in voice-brokered trades contributed to the record 456 lots traded in LME Steel Rebar on May 26th.