Strong Job Gains, for Second Month, Reframe Economic Outlook

6 Aug 2016   Economy, USA

After months of conflicting signals and economic uncertainty, it became clear on Friday that the American jobs machine has moved back into high gear. A report from the Labor Department that said employers added 255,000 jobs in July had been eagerly anticipated on Wall Street, in Washington and on the campaign trail, and the much-better-than-expected showing immediately rippled through all three arenas. Stocks surged, experts expressed more confidence that the Federal Reserve was likely to raise interest rates at least once this year, and it was evident that long-stagnant wages for ordinary workers were advancing at a more robust pace. “This was everything you could have asked for, maybe more,” said Michelle Meyer, head of United States economics at Bank of America Merrill Lynch. “We’re seeing new entrants into the labor market, which implies a longer runway for the business cycle.” And with the political conventions completed, the buoyant […]

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