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Abril 06, 2007 Mixed numbers and the US economy seems healthier
The much waited employment report was released in Good Friday with almost of the markets closed and traders on holidays. Still there was a strong reaction to a very healthy number than takes away any possibility of interest rates reductions from the Fed. Greenspan prediction must wait at least one more year given the low unemployment rate reported this Good Friday. Farm payrolls came in at 180 000, well above the 130 000 analyst consensus. Moreover, there were upward revisions in the previous month’s releases and the February number was revised upwards to 113000 from 97000. The unemployment rate dropped to 4.4% (4.395% being precise). Still the housing sector seems weak, business investment is soft, and manufacturers seem implementing an inventory correction. However businesses are still hiring and consumers still spending. With inflation at the higher range and a tight labor market, the Fed is not going to reduce rates. More convincing news in the downside are needed to change the view of the Fed. 
Posted on 6 Abril 2007 in Financial Markets Trackback PingsTrackBack URL for this entry: CommentsPost a comment |
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