U.S. jobless claims, wages data point to tightening market
http://finance.yahoo.com/news/u-jobless-claims-wages-data-002120846.html
The number of Americans filing for unemployment fell more than expected as compensation increased during the third quarter of the year. This comes at a time when the Federal Reserve officially stopped bond buying program. Many are beginning to speculate that the Fed may start to raise rates sooner rather than later. Compensation increased at a rate of 2.3% over the quarter and hourly compensation increased 3.3%, The Fed is closely watching wage growth and will use it as a key factor when they decide the raise rates. One economist cited in the article expects a hike in rates in early 2015.
Obviously interest rates are an important part of the economy. It will be interesting to see how this plays out over the next few years.
Obviously interest rates are an important part of the economy. It will be interesting to see how this plays out over the next few years.
The expanding economy may be beneficial for the United States over the next year. There could be increases in revenues, wages, and hirings if this continues. Private payrolls may have increased over the last quarter, but unemployment benefits have dropped. Still, the number of Americans filling for unemployment decreased. The frictional unemployment in the economy must be decreasing in order for this to happen.
ReplyDeleteIts always a good thing when unemployment is falling. It is a really good thing that even when the fed stopped its bond buying unemployment continued to fall. This is a good sign for the U.S economy and the outlook for the future looks bright.
ReplyDeleteAs always when people start to guess when the Fed is going to start increasing or decreasing the rate, certain amount of people get hurt by it. The compensation that is given to the people is very beneficial, but is only given to match the inflation that is happening in the economy.
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