(New York = Yonhap Infomax) Reporter Jeong Seon-young = Wall Street experts analyzed that although the non-agricultural employment index in February exceeded Wall Street’s expectations, it would have given relief to the US Federal Reserve.
US Federal Reserve System (Fed)Yonhap News Photo
According to foreign media such as Market Watch and CNBC on the 10th (local time), Bryce Dotty, senior portfolio manager at Sit Investment Associates, said, “The employment data is a big relief for investors who fear that the Fed will raise interest rates of 50. basis points.” “It was 11,000, stronger than the 225,000 expected, but the unemployment rate rose to 3.6% from 3.4%,” he said.
“Even the participation rate in economic activity rose slightly from 62.4 percent to 62.5 percent,” he added.
Thomas Simmons and Agnes Markowska, Jeffreys Economist, said: “The Fed, like SVB Financial Group (NAS: SIVB), the parent company of Silicon Valley Bank (SVB), is a little concerned that it does not need to accelerate rate hikes. at a time when something is happening in the banking sector. You will be comforted.”
“Overall, the employment data will not affect the 25bps or 50bps rate at the Federal Open Market Committee (FOMC) in March,” Catherine Judge, senior economist at CIBC, said.
However, the details of the employment indicators do not mean that the job market has completely cooled, and inflation concerns remain high, experts say.
“Rising wages are still a sign that the economy is overheating, which is a real challenge for the Fed,” said Beth Ann Bobino, an economist at S&P Global Ratings.
“Perhaps the best news in this report is that wage pressures have eased,” said John Lynch, chief investment officer of Comerica Wealth Management.
Still, “given the recent economic situation and the CPI report next week, the possibility of a 50 basis point hike in March is still on the table,” he said.
The US Department of Labor announced on the same day that non-farm payrolls increased by 311,000 in February this year.
February’s new hires exceeded the 225,000 increase expected by analysts polled by the Wall Street Journal.
Employment was revised in January, which surprised the market with an unexpected explosion, from an increase of 517,000 to an increase of 504,000.
The US unemployment rate for February was 3.6%, up slightly from the previous month (3.4%).
The average hourly wage in February was $33.09, up $0.08 (0.24%) from the previous month. Wage growth slowed slightly from the 0.30% in January.
syjung@yna.co.kr
(end)
This article was submitted at 00:02, 2 hours earlier on the Infomax financial information terminal.
Copyright © Yonhap Infomax Unauthorized reproduction and redistribution prohibited
