The U.S. Labor Department released the labour market data today. The U.S. economy added 295,000 jobs in February, exceeding expectations for a rise of 241,000 jobs, after a gain of 239,000 jobs in January.
The U.S. unemployment rate fell to 5.5% in February from 5.7% in January, beating forecast of a decline to 5.6%. That was lowest level since May 2008.
But the decline was driven by people leaving the labour force.
These figures could mean that the Fed might start to hike its interest rate in June.
But a weak wage growth figures and low inflation in the U.S. could lead to a delay of the interest rate hike by the Fed.
Average hourly earnings increased 0.1% in February, missing forecasts of a 0.2% gain, after a 0.2% drop in January.
The U.S. consumer price index fell to an annual rate of -0.1% in January from 0.8% in December. That was the lowest level since October 2009.
The decline in inflation was driven by falling oil prices. Oil prices might remain low in the U.S. due to oversupply.
Summarising the above, if there is no changes in wage growth and inflation still remains low, it's unlikely that the Fed will start to raise its interest rate hike.
© 2000-2021. All rights reserved.
This site is managed by Teletrade D.J. Limited 20599 IBC 2012 (First Floor, First St. Vincent Bank Ltd Building, James Street, Kingstown, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at firstname.lastname@example.org.