Job Report And Reaction From The Stock Market, Bond Markets, And The Federal Reserve 's Continued Patience

Job Report And Reaction From The Stock Market, Bond Markets, And The Federal Reserve 's Continued Patience

Length: 728 words (2.1 double-spaced pages)

Rating: Better Essays

Open Document

Essay Preview

Subject
This report is to analysis the May jobs report and the reactions from the stock market, bond market, and the Federal Reserve’s continued patience to wait to increase interest rates. In the recent Wall Street articles the May jobs report was released and a 5.5% unemployment rate was an increase from last months 5.4%. The Federal Reserve wants to see more strength in the labor market. The Fed is expecting to see this strength being lead by rising wages. Also, the Fed is looking for signs of income growth to further push the economy’s momentum.
Background and Importance
The U.S. unemployment rate had a small increase of 0.1%. Nevertheless there were good signs in the labor market. Non-farm jobs increased by 280,000 and wage growth showed improvement as well. More Americans joined the workforce with the labor market making progress, in closing the gap to what the Fed considers full employment or 2% unemployment. Average hourly earnings of private-sector workers rose 0.3% from the prior month. Earnings were up 2.3% in May from a year earlier, slightly better than the 2% annua...

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »