Employment growth accelerated in May and the unemployment rate fell, suggesting that companies are making progress in filling record job vacancies as the economy recovers. Non-farm payrolls rose 559000 in May, compared with a revised 278000 in April, according to data released by the Labor Department on Friday. Economists surveyed by Bloomberg had a median forecast for a 675000 increase in May data. The unemployment rate fell to 5.8%.

U.S. Treasury Secretary Yellen says President Joe Biden should press ahead with his $4 trillion spending plan, even if they trigger inflation and rising interest rates into next year. "if our final interest rate environment rises slightly, it's actually a good thing from a social and Fed point of view," Yellen said in an interview with Bloomberg News on Sunday as she returned from a meeting of G7 finance ministers in London. The debate over inflation has intensified in recent months, with Yellen and others arguing that the current price rise is due to temporary anomalies caused by the epidemic-such as supply chain bottlenecks and a surge in spending as the economy reopens. But critics say tens of billions of government aid could cause prices to continue to soar.

The use of the Fed's overnight reverse repurchase tool climbed on Friday, only slightly below the all-time high set last week. The 42 participants spent $483.3 billion, surpassing Thursday's $479.1 billion and close to the all-time high of $485.3 billion set on May 27. The tool offers an overnight interest rate of 0%, helping to temporarily reduce the reserve balance in the banking system. 

Loretta Mester, president of the Cleveland Fed, said Fed policy makers should "be patient" before considering scaling back their asset purchases after seeing more evidence of progress in the US labor market. "We hope to be very patient at the moment, because this is a huge impact on the economy," Mester said in an interview with CNBC on Friday. The Fed had promised to maintain the pace of asset purchases of $120 billion a month until "substantial further progress" in inflation and employment. After the Labor Department reported that US job growth rebounded in May and the unemployment rate fell to 5.8 per cent, Mester said companies had made some progress in filling record job vacancies as the economy accelerated.

The Group of Seven (G7) has agreed on a framework for a global tax agreement that could give Europeans greater power over Facebook Inc. And American tech giants such as Amazon levy taxes and set a floor for global corporate tax rates. The agreement reached at a meeting of G7 finance ministers in London eased transatlantic tensions that have affected negotiations among about 140 countries over the years. It paves the way for the G20 to reach a broader agreement as early as next month. "this global minimum tax rate will end the race to the bottom of corporate taxation and ensure fairness for the middle class and working people in the United States and around the world," US Treasury Secretary Janet Yellen said in a statement issued after talks in London. 

The White House says U. S. President Joe Biden rejected upgraded infrastructure proposals by some Republican senators led by Shelley Moore Capito on Friday. In a statement, the White House said Capito outlined an infrastructure plan in a phone call with Mr. Biden, spending about $50 billion more than the senators had previously proposed. The White House said: "the president thanked her for her efforts and goodwill, but also said that the current proposal does not meet his goals of developing the economy, tackling the climate crisis and creating new jobs." 

Vaccine coverage in the United States has passed the milestone of 300 million doses, and the number of new and fatal cases has continued to decline, returning to levels just after restrictions were imposed in the United States in March 2020. Britain could start vaccinating children as early as August, the Daily Telegraph reported. Meanwhile, the Financial Times reported that civil servants were drawing up contingency plans to postpone the relaxation of restrictions originally scheduled for June 21. China has approved the emergency use of the COVID-19 vaccine for children, becoming the first major country to approve vaccination for three-year-old children.

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