Gary Siegel

The Chicago Purchasing Managers' Business Barometer slumped to 51.6 in June from 58.7 in May, the National Association of Purchasing Management-Chicago said Friday.

Monetary stimulus can no longer fuel this economy, and Federal Reserve Board Chairman Ben Bernanke was right to "clarify … expectations regarding how the pace of asset purchases is likely to evolve," Federal Reserve Bank of Richmond President Jeffrey Lacker said Friday.

The seasonally adjusted Milwaukee Report on Business surged to 51.6 in June from 40.7 in May, the Institute for Supply Management-Milwaukee reported Friday.

The Midwest Economy Index slipped to negative 0.18 in May from an unrevised positive 0.03 in April, the Federal Reserve Bank of Chicago reported Friday.

The Fed was trying to clarify its policy, not signal a change, when Federal Reserve Board Chairman spoke of tapering asset purchase, Federal Reserve Board Governor Jeremy C. Stein said Friday.

The Treasury Department auctioned $29 billion of seven-year notes, with a 1 7/8% coupon, a 1.932% high yield, a price of 99.628563.

The Treasury Department said Thursday it will auction $30 billion 91-day bills and $25 billion 182-day discount bills Monday.

Manufacturing activity in the Federal Reserve Bank of Kansas City's region "fell modestly, although producers'expectations for future activity continued to increase," according to the bank's monthly manufacturing survey, released Thursday.

If incoming data meet expectations, the Fed could moderate its asset purchases next year, with the program ending by mid-year, Fed Governor Jerome H. Powell said Thursday.

Pending home sales soared 6.7% to an index reading of 112.3 in May, after a downwardly revised 0.5% decrease to 105.2 in April, according to a report released Thursday by the National Association of Realtors.

The economy needs to meet the Fed's expectations before it slows asset purchases, according to Federal Reserve Bank of New York President and Chief Executive Officer William C. Dudley.

The Chicago Fed Midwest Manufacturing Index fell 0.4% in May to a seasonally adjusted level of 95.8, as all four regional sectors declined, the Federal Reserve Bank of Chicago reported Thursday.

The Treasury Department auctioned $35 billion of five-year notes, with a 1/8 coupon, a 1.484% high yield, a price of 99.476843.

Dodd-Frank is "ineffective" and "burdensome" Federal Reserve Bank of Dallas President Richard W. Fisher told Congress Wednesday, calling for a bi-partisan plan to end too big to fail.

The Treasury Department Tuesday auctioned $35 billion of two-year notes with a 3/8% coupon at a 0.430% yield, a price of 99.890734.

The Treasury Department Tuesday auctioned $25 billion of 364-day bills at a 0.160% high yield, a price of 99.838222.

The Treasury Department Tuesday auctioned $30 billion of four-week bills at a 0.030% high yield, a price of 99.997667.

Service sector activity was stronger in June, according to the Federal Reserve Bank of Richmond service-sector activity survey, released Tuesday.

Manufacturing activity in the central Atlantic region "advanced moderately in June after contracting at a less pronounced rate in May," while expectations were near last month's numbers, according to the monthly business activity survey conducted by the Federal Reserve Bank of Richmond, as the manufacturing index rose to positive 8 from negative 2 in May.

The consumer confidence index climbed to its highest level in five years, hitting 81.4 in June from a revised 74.3 last month, The Conference Board reported Tuesday.