Economy

Wages and salaries for civilian workers rose 0.9% in the three months through June and 3.2% from a year earlier.

"The longer that high inflation persists, the more challenging and costly it can be to bring it back down," says Cleveland Fed President Beth Hammack.

Inflation-adjusted gross domestic product increased an annualized rate of 1.5% in Q2.

With fewer staff and less inflation-adjusted funding, agencies have less capacity to modernize surveys, invest in statistical research, or respond to growing demand for federal data.

Goods exports fell 1.8% in June, led by a slide in industrial supplies, but imports dropped by 2.6%.

Treasuries reacted to the threat of escalation in the Iran war, which sent oil prices higher and boosted bets that the Federal Reserve could raise interest rates as soon as next week.