samedi 4 avril 2015
Fed Has One More Reason to Delay Rate Increase as Hiring Slumps
Posted on 06:06 by nice news
A hiccup in the jobs data may give Federal Reserve officials pause as they ponder the right time for a liftoff.
Employers in the U.S. added 126,000 workers in March, the fewest since December 2013, Labor Department data showed Friday. Revisions to prior months disappointed as well, subtracting 69,000 jobs from the previous counts for January and February.
The Fed is watching for the economy to reach or approach full employment and generate higher inflation before raising interest rates from near zero. Fed Chair Janet Yellen and her colleagues last month opened the door to an increase as soon as June, while also suggesting in forecasts that September may be a more likely time.
“This single report will not necessarily result in the Fed changing tack on its view of policy tightening this year,” Millan Mulraine, a research strategist at TD Securities USA LLC in New York, wrote in a note after the report. “What it will do is weaken the argument for a mid-year hike” and raise the stakes riding on the next few reports, he said.
The jobs figures followed a spate of data showing the economy cooled in the first quarter as the oil patch weakened, bad winter weather limited consumer spending and the strong dollar hurt the nation’s manufacturers. The gain in March payrolls snapped 12 straight months of 200,000-plus monthly gains, the longest such stretch since 1995.
Fed Funds
The odds of a June liftoff impli
Employers in the U.S. added 126,000 workers in March, the fewest since December 2013, Labor Department data showed Friday. Revisions to prior months disappointed as well, subtracting 69,000 jobs from the previous counts for January and February.
The Fed is watching for the economy to reach or approach full employment and generate higher inflation before raising interest rates from near zero. Fed Chair Janet Yellen and her colleagues last month opened the door to an increase as soon as June, while also suggesting in forecasts that September may be a more likely time.
“This single report will not necessarily result in the Fed changing tack on its view of policy tightening this year,” Millan Mulraine, a research strategist at TD Securities USA LLC in New York, wrote in a note after the report. “What it will do is weaken the argument for a mid-year hike” and raise the stakes riding on the next few reports, he said.
The jobs figures followed a spate of data showing the economy cooled in the first quarter as the oil patch weakened, bad winter weather limited consumer spending and the strong dollar hurt the nation’s manufacturers. The gain in March payrolls snapped 12 straight months of 200,000-plus monthly gains, the longest such stretch since 1995.
Fed Funds
The odds of a June liftoff impli
Fed Has One More Reason to Delay Rate Increase as Hiring Slumps
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