The S&P opened lower as new data shows the labor market continues to be hot in 2023, which has dangerous implications for interest rates to come. Nonfarm payrolls increased by 311,000, the unemployment rate rose to 3.6%, and monthly wages grew at the slowest pace in a year. “If we get a second strong report, that really has to change a lot of narratives out there about what is going on in the labor market and the economy,” Glassdoor’s chief economist said on Wednesday, before adding that a job report of over 250,000 would “make markets pretty nervous about what the implications are for interest rates.” Despite some signs of softening, the stronger-than-expected report is believed to turn the Fed’s prospective 50-basis-point hike into reality. In other news, House Republicans are pushing to have their own budget proposal ready in response to Biden’s plan for the next fiscal year. “President Joe Biden’s budget is a reckless proposal doubling down on the same far-left spending policies that have led to record inflation and our current debt crisis,” said Speaker Kevin McCarthy and others in a statement.
Business Insider/Madison Hoff
The US added 311,000 jobs in February, adding yet another month of hot labor market growth
The labor market continues to be hot in 2023, as the US saw another massive jump in jobs in February.
According to the Bureau of Labor Statistics, nonfarm payrolls rose 311,000, exceeding the 205,000 gain forecasted by economists surveyed by Bloomberg. They expected payroll growth in February to fall from January’s massive initial reading last month of 517,000.
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Bloomberg via Yahoo Finance/Reade Pickert
US Payrolls Top Estimates, Wages Cool in Mixed Signal for Fed
US payrolls rose in February by more than expected while a broad measure of monthly wage growth slowed, offering a mixed picture as the Federal Reserve considers whether to step up the pace of interest-rate hikes.
Nonfarm payrolls increased 311,000 after a 504,000 advance in January, a Bureau of Labor Statistics report showed Friday. The unemployment rate ticked up to 3.6% as the labor force grew, and monthly wages rose at the slowest pace in a year.
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Fox Business/Elizabeth Elkind
GOP readies budget plan in ‘coming weeks’ in response to Biden’s ‘out-of-control spending’
Republicans are pushing to have their own budget proposal ready for the next fiscal year “in the coming weeks,” a House lawmaker said Thursday responding to President Joe Biden’s plan.
Biden and his allies have for weeks demanded that Republicans, who insist on spending cuts to raise the debt ceiling, show their plan for what they want rolled back. The president claims his plan will reduce the deficit without raising the tax burden on middle-class Americans, a claim the GOP rejected shortly after Biden’s budget was revealed.
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