Bahnsen Group CIO David Bahnsen previews Federal Reserve Chairman Jay Powell’s Congressional testimony and shares his predictions for the upcoming jobs report.
U.S. employers added 275,000 jobs in February, higher than economists expected of 200,000 and the average monthly increase of 255,000 recorded in 2023, the Labor Department said Friday. did. The unemployment rate rose to 3.9%, compared to the expected 3.7%.Still a big hit Increased by 353,000 in January Revised downward to 229,000.
Growth was driven by food services, as well as employment of health care workers and government workers. On the other hand, 4,000 jobs were cut in the manufacturing industry.
Average hourly wages, a key indicator of inflation, increased by 0.1% in the month and 4.3% from the same period last year. Some economists say strong job growth and rising wages are fueling inflation.
The number of well-paying jobs is decreasing
The statistics may not be enough for the Federal Reserve, which aims to slow inflation and the economy, to start a rate-cutting cycle ahead of the 2024 presidential election.
WASHINGTON, DC – MARCH 7: Federal Reserve Chairman Jerome Powell arrives for a Senate Banking, Housing and Urban Affairs Committee hearing at the Capitol Hill on March 7, 2024 in Washington, DC. . Mr. Powell testified at a hearing entitled “Semiannua.” ((Photo provided by Kent Nishimura/Getty Images))
Earlier this week, Fed Chairman Jerome Powell reiterated that position in his annual testimony before Congress.
“The committee believes that it is not appropriate to lower the target range until there is greater confidence that inflation is on a sustained path toward 2%,” he said in prepared remarks before the House Financial Services Committee. “I think so,” he said.
Higher interest rates mean consumers pay more for things like car loans and credit cards. As an example, the average percentage rate (APR) for credit cards tracked by Lending Tree is 24.61%.
Lower inflation is key to Fed rate cuts
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The market currently expects the first rate cut to occur in June. CME’s FedWatch tool.
FOX Business’ Megan Henney contributed to this report.
