Employment in the USA Drops 92,000 in February

Latest figures from the US Department of Labor show that the numbers of employees on payroll fell in February by 92,000.  The unemployment rate remained steady at 4.4%, leaving the Federal Reserve with a conundrum.

• Does the Fed hold or increase rates due to higher oil prices (Iran effect) that will impact on transportation costs for goods and services meaning higher inflation?
• Long term unemployment (27 weeks or more) is also up 400,000 compared to a year ago at 1.9m.
• Does the Fed cut rates to boost the economy?

In addition to above news, new job increases for January were found to be lower than reported, adding more ‘fire’ to an economy slowing down. 

Comment

Long term unemployment up, employees on payroll falling, this is going to be a tough call for the Fed on 18^th March.

Why is US economic news so important?  When the US ‘sneezes’ the World ‘catches a cold’.