NFP rises 313K, but wages only 2.6% y/y – Fed will have to think hard

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The US Non-Farm Payrolls report showed a whopping rise of 313K jobs in February, far better than 200K that had been expected. Moreover, the revisions for previous months added no less than 54K positions, a blockbuster rise in jobs. While the unemployment rate is still at 4.1%, this is due to a welcome rise in the participation rate.

However, the rise in jobs does not result in a wage rise. Average hourly earnings rose by only 0.1% and only 2.6%. This shows there are no inflationary pressures and the Fed will not be in a hurry. For stocks, this is a Goldilocks scenario: strong growth but no extra pay to workers and perhaps fewer rate hikes.

The Fed convenes in two weeks and now enters a blackout period in which it will remain silent. A rate hike is certain but the debate about three or four rate hikes in 2018 remains an open one.

Here is the live coverage of the event as it happened.

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Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned the significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.

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