Data released on Friday showed the US economy added 311,000 new jobs in February, beating expectations. Wells Fargo analysts They point out that while hiring is still on the rise, there are signs that strong job growth need not come at the expense of inflationary pressures. They believe that the Federal Reserve will continue to tighten its monetary policy.
Solid hiring continued in February, but a slowdown is expected
“But with 3.6% unemployment, the labor market is incredibly tight. So we’re cautious about extrapolating the degree of easing in earnings growth over the past year, which was likely helped by the frenzy of re-employment and job change after the initial phase of COVID subsides.With labor still quite short, wage pressures are likely to remain high in the near term.”
“Even with the unemployment rate rising in February, the labor market remains incredibly tight. Although we expect hiring to slow more sharply from here, there is still plenty of room for the labor market to weaken before concerns to the Fed.”
“We expect the FOMC to remain in a tightening mode for a while, with the bar for a 50 basis point hike at the next meeting in March somewhat higher following today’s report showing some easing of inflationary pressures coming from the labor market. “
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
