Economy again beats expectations with 311,000 jobs in February, unemployment rises to 3.6%

311,000 new jobs were added to the economy. Jobs In February, the Federal Reserve raised interest rates more than expected. This is another indication that they have not had a significant impact on the economy. The strong The labor marketFriday’s Bureau of Labor Statistics statistics provide some confidence in the strength of our economy. These are the Unemployment However, the rate rose to 3.6% which is still very low by historical standards.

Fed could be inclined towards a more aggressive monetary strategy at its next meeting. The stronger jobs report suggests that central bank rate increases are not having the impact they expected.

“It’s stronger than expected, although, on a positive note, the unemployment rate edged up … which places the Fed in somewhat of a quandary — what to do next,” Brian Marks is the Executive Director of University of New Haven’s Entrepreneurship and Innovation Program. He spoke to the Washington Examiner The report was released.

This is the most recent reading after several months of high job gains and low unemployment rates since 1960s. These are important economic data President Joe Biden highlighted, even though historical inflation continues to eat away at people’s paychecks throughout the country.

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The labor market recovery took a lot of hits, including mass layoffs and sharp falls in housing prices.

This week, Jerome Powell (Fed Chairman) testified before both Congress and the Senate. During his testimony, Powell struck a more hawkish tone and explained that the strong labor market coupled with hotter-than-anticipated recent inflation reports could cause rates to go higher and stay there for longer.

According to the Fed’s personal consumption expenditures index (the gauge that the Fed favors), inflation rose to 5.4% in January.

Powell stated that the data were accurate. “suggests that the ultimate level of interest rates is likely to be higher than previously anticipated. If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes.”

“Restoring price stability will likely require that we maintain a restrictive stance of monetary policy for some time,” He concluded.

The odds of a Fed rate increase of half-percentage points or more rose to 60% after his speech, according CME Group’s FedWatch tool. This tool calculates the probability by using futures contract prices of rates in the short term market that are targeted by the Fed.