With employment figures up, the time may be right for the Federal Reserve to enact another interest rate hike.
The New York Times reports that payroll employment rose by 235,000 in February, and monthly job growth has averaged 209,000 since December. The jobless rate fell to 4.7 percent, which is near what the central bank considers full employment.
With the job market thriving, the Fed awaits the right time to raise rates. The board’s members want to cut off incipient inflation without negatively impacting job hiring.
Cautioning the Fed against moving too quickly with a rate increase, Elise Gould, an economist at the left-leaning Economic Policy Institute, noted: “Workers throughout the economy, including young workers, workers of color, and low-wage workers, need a chance to make up lost ground on wage growth. To that end, the Federal Reserve needs to keep their foot off the brakes and let the labor market reach full employment.”
Advertisement
Related Stories
Economics
Housing Share of GDP in Q1 2024 Rises Above 16%
The increase marks the first time GDP has surpassed 16% since 2022
Economics
Shelter Costs Drive Inflation Higher Than Expected in January
January Consumer Price Index data show inflation increased more than anticipated as shelter costs continue to rise despite Federal Reserve policy tightening
Economics
Weighing the Effects of the Fed's and Treasury's Latest Announcements
The upshot of the Jan. 31 announcements is that while mortgage rates will stay higher for longer, they're likely to hold steady
