US jobs growth paves the way for rate hike
Main page Economics, Donald Trump, US

News that the US added 235,000 jobs last month appears to have cleared the path for the Fed to lift interest rates for only the third time since the Global Financial Crisis in 2008.

Last month's gains came on top of a further 238,000 new jobs in January, beating estimates and marking the best consecutive monthly increases since July, according to a Labor Department report.

The unemployment rate also edged down from 4.8 to 4.7 percent, with wages growth at ticking along at 2.8 percent year-on-year.

Construction was a major contributor to the positive result with the industry adding 58,000 jobs after growing by 40,000 in January.

The unseasonably warm weather was undoubtedly a factor but new US President Donald Trump will probably also try and claims some of the glory, touting the boost in business confidence and his infrastructure proposals.

The data has also lifted the US Dollar and now makes the first US rate rise of the year seem inevitable.

The Fed will meet next week when it is expected to follow up its December rate rise with another upward movement.

The current rate sits at a low 0.75 percent with next week's rate hike potentially the first in a series as the US economy continues its recovery.


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