Feb 07 2014

Due u.s. Payrolls rise decrease the jobless ratio 

Unemployment declined to 6.6 percent, the least since October 2008, from 6.7 percent in December.“It’s another disappointment, but it’s not anything disastrous,” said Julia Coronado, New York-based chief economist for North America at BNP Paribas and a former Fed economist, who accurately forecast the jobless rate. “We’re still in muddle-along territory rather than take-off mode.

 

Payrolls rose less than projected in January and the jobless rate unexpectedly dropped to the lowest level in more than five years, clouding the outlook for the U.S. economy and Federal Reserve.The 113,000 gain in hiring fell short of the 180,000 advance that was the median forecast of economists surveyed by Bloomberg and followed a 75,000 increase the prior month, Labor Department data showed today in Washington.

 

There isn’t the kind of momentum in hiring.”Stocks and Treasury securities rallied after the report as investors scrutinized the data to determine whether Fed policy makers will continue to trim stimulus in coming meetings. The figures represent a communications challenge for new Fed Chairman Janet Yellen as she prepares to testify before Congress next week.

 

Rate Range Projection by Bank

 

Next  week           101.50  -  103.50

Next 3 months      100.00  -  105.00