FINANCIAL TIMES: A record surge Chinese imports widened the US trade gap in August, threatening to increase tension between the two countries amid the escalating row about China’s currency policy.
Separate reports on Thursday showed a bigger than expected rise in jobless claims and faster inflation due to a jump in food prices. Persistent weakness in the labour market could raise chances that the Federal Reserve will engage in another round of quantitative easing in an effort to boost employment.
The trade deficit widened by 8.7 per cent to $46.3bn, commerce department figures showed on Thursday. That was the second highest shortfall of the year and exceeded economists’ expectations as US businesses stocked up on consumer goods and cars at the end of summer…. (more)
