Jobs and wages in the US are likely to continue to rise sharply in March while inflation may have reached a new 40-year high, according to Bloomberg. Reports that could push the US Federal Reserve towards even faster monetary easing.
Employers probably added nearly half a million jobs, and average hourly earnings rose 5.5 percent from a year earlier, according to a Bloomberg Average survey forecast for Friday by government data. The unemployment rate is expected to fall to 3.7%.
The data will help policymakers determine whether higher interest rate hikes are justified as the Fed tries to contain galloping inflation.
A day earlier, another February Income and Expenditure Report is projected to show that the personal consumption expenditure price index accelerated to an annual progress of 6.4%. That is more than three times the Fed’s inflation target.
Friday’s announcement will be the latest monthly employment report ahead of the next US Federal Reserve meeting in early May, although officials will also receive data on March inflation reflecting the effects of the Russia war on Ukraine.
“We expect March job data and inflation to further strengthen the Fed hawks’ determination – and pull those who remain skeptical – of the need to increase the 50 basis points at the May meeting.” .
The US economic data calendar is full next week and will also include job reports, consumer confidence and a closely monitored manufacturing survey.
Fed Regional Presidents Patrick Harker, Raphael Bostic and Thomas Barkin are expected to speak at separate events.
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Source: Capital
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