A stream of 300,000 monthly gains in new jobs is normally a sign of a hot labor market and perhaps higher inflation. Yet Wall Street is finding comfort in evidence of slowing wage growth as a potential escape valve for the economy.
The U.S. added a larger-than-expected 311,000 new jobs in February, the government reported Friday. That puts the average increase over the last six months at 336,000. The Fed is worried a historically tight labor market will keep upward pressure on wages and make it harder to get high inflation under control. Higher interest rates reduce inflation by weakening the economy — and also raise the risks of recession.
Now investors and economists think a smaller rate hike is back on the table after the softest increase in wages in a year. Hourly pay rose a scant 0.2% in February. “Make no mistake,” said chief economist Gregory Daco of EY Parthenon, “wage growth momentum is easing.” These hints at a cooler labor market encouraged investors. Stocks prices DJIA SPX stabilized Friday and bond yields TMUBMUSD10Y fell.
vs 7% inflation
Finance Finance Latest News, Finance Finance Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
More than 300 people became ill on Princess Cruises ship: CDCMore than 300 people on one of Princess Cruises' ships fell ill and suffered from vomiting and diarrhea, CDC says One or more of the cooks didn't wash their hands after using the can 🤣💀 Been a perpetual problem for cruise ships for decades no matter what they do to try to fix it.
Source: BusinessInsider - 🏆 729. / 51 Read more »