On Thursday the Department of Commerce released a report that showed durable orders in August fell 18.2 percent to a new record in August after posting a new record increase of 22.5 percent in July.
Some of the decrease in August can be explained by airplane orders, a volatile category, which dropped 74.3 percent in August.
New orders for capital goods, an indicator of business investment, rose 0.6 percent in August.
Richard Fischer, Federal Reserve President Bank of Dallas, said from Rome that the Federal Reserve may start raising interest rates in the spring of 2015, earlier than the market had expected.
“It’s assumed in the market place that we’ll start our liftoff in raising interest rates some time between the spring and the summer,” Fischer said.
“I won’t say what we’re saying internally, that would not be appropriate, but maybe sooner rather than later,” Fischer added.
Yesterday U.S. equities rallied following better than expected new home sales which climbed 18 percent in August along with dovish comments from Federal Reserve Bank President Charles Evans who said that the U.S. Federal Reserve should be “exceptionally patient” in raising interest rates.
“I am very uncomfortable with calls to raise our policy rate sooner than later,” Evans said.