The numbers are in and it looks like the world financial situation is not
affecting our economy's job creation. This gives the Federal Reserve Board food
for thought going into their meeting next week. As we indicated earlier, many
analysts originally thought this would be the month the Fed raised rates again,
but market volatility and international concerns tempered these
thoughts.
The economic news leading up to the jobs report was pretty solid as well.
There was an upward adjustment in the measure of the fourth quarter's economic
growth and solid growth in orders for durable goods, existing home sales,
personal income and consumer spending. Not all the news was positive, as new
home sales faltered, but new home sales were coming off a month in which we saw
a very large increase in sales.
All in all, the
increase in jobs of 240,000 shows that the economy is continuing to move
forward, which means that we are moving towards another rate increase by the
Fed. Looking at the big picture, the stock market's recent rally and the rebound
in oil prices are all giving us the same indication. However, that does not mean
that the Fed will definitely be increasing rates when they meet next week,
especially considering the fact that the increase in wage growth was tame. But
certainly, it puts such an increase back on the table.
Mike Ervin
NMLS # 282715
W.J. Bradley Mortgage
mike@mikeervin.com
www.mikeervin.com
P: (650) 451-7797
C: (650) 766-8500
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