Victor EzejaAccording to the Bureau of Labor Statistics’ latest jobs report, the United States economy added 275,000 jobs last month, while the unemployment rate increased to 3.9 per cent for the country.
The US unemployment rate was predicted by economists to remain at 3.7 per cent in February, while US employers were expected to add about 200,000 new jobs.
READ ALSO: US Election 2024: Biden Wins Primary In Michigan, Amid ‘Uncommitted’ Votes Threat
Despite the hotter-than-expected headline data, markets were generally up on Friday morning, with investors focusing more on the higher unemployment rate and declining monthly revisions as potential catalysts for rate reduction.
After the pinnacle of inflation was reached, Wall Street had anticipated as many as six rate decreases this year.
Powell has, however, emphasized time and time again that the Fed will not lower interest rates as long as the economic indicators, particularly the employment figures, keep coming in strong.
This is due to the fact that people would keep spending as long as they believe they can quickly get another employment. And inflation rises as a result.
On Friday, President Joe Biden praised the February jobs report, which revealed that payroll growth kept up a steady pace and that the unemployment rate fell below 4% for the 25th consecutive month—the longest run in more than 50 years.
Biden in a statement released on Friday, claimed that his administration “inherited an economy on the brink,” three years ago, but today the “economy is the envy of the world.”
The United States President also mentioned his latest recommendations, which he unveiled during Thursday’s State of the Union speech and which aim to alleviate a problem with rising living expenses that many Americans are facing.
“Last night, I put forward my vision for America’s future: one where we build the economy from the middle out and the bottom up, where we invest in all Americans, and where the middle class has a fair shot and we leave no one behind,” Biden said.
“I’m taking action to continue lowering costs by taking on Big Pharma, getting rid of hidden junk fees, and making housing more affordable.”
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
