Fed Is Expected to Maintain Stimulative Programs
WASHINGTON — The Federal Reserve on Wednesday is expected to maintain its resolve to keep borrowing costs at record lows despite growing signs that the economy is strengthening. The Fed will end a two-day meeting with a policy statement and updated economic forecasts. Afterward, Chairman Ben Bernanke will hold a news conference. Most analysts think policymakers will acknowledge the economy’s improvements but leave the Fed’s stimulative policies unchanged. Bernanke has said in recent weeks that the job market, in particular, has a long way to go to full health and still needs the Fed’s extraordinary support. The unemployment rate, at 7.7 percent, remains well above the 5 percent to 6 percent range associated with a healthy economy. The Fed has said it plans to keep short-term rates at record lows at least until unemployment falls to 6.5 percent, as long as the inflation outlook remains mild. And it foresees unemployment staying above 6.5 percent until at least the end of 2015. Economists ...
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Weekly U.S. Jobless Aid Applications Fall to 332,000
(WASHINGTON) — Fewer Americans sought unemployment aid last week, reducing the average number of weekly applications last month to a five-year low. The drop shows that fewer layoffs are strengthening the job market. The Labor Department said Thursday that applications fell 10,000 to a seasonally adjusted 332,000. That pushed the four-week average to 346,750, the lowest since March 2008, just several months after the Great Recession began. Applications are a proxy for layoffs. They have fallen nearly 13 percent since November. At the same time, net hiring has picked up. Employers have added an average of 200,000 jobs per month from November through February, up from about 150,000 a month in the previous four months. The unemployment rate fell to a four-year low of 7.7 percent in February from 7.9 percent the previous month. (MORE: U.S. Jobless Rate Falls to 7.7%, a 4-Year Low) The improvement in the job market shows employers aren’t cutting more jobs because of worries about higher ...
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U.S. Jobless Rate Falls to 7.7%, a 4-Year Low
(WASHINGTON) — A burst of hiring in February added 236,000 U.S. jobs and reduced the unemployment rate to 7.7% from 7.9% in January. The strong job growth showed that employers are confident about the economy despite higher taxes and government spending cuts. The February jobs report issued Friday provided encouraging details: The unemployment rate is at its lowest level in four years. Job growth has averaged more than 200,000 a month since November. Wages rose. And the job gains were broad-based, led by the most construction hiring in six years. The unemployment rate had been stuck at 7.8% or above since September. About half the decline in February occurred because more of the unemployed found jobs. A decline in the number of people looking for work accounted for the other half: People who aren’t looking for jobs aren’t counted as unemployed. (MORE: Weekly U.S. Unemployment Claims Fall to 340,000) Employers did add slightly fewer jobs in January than the government had first estimated. ...
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Fed Survey: U.S. Economy Growing Throughout Country
(WASHINGTON) — Strong auto sales, hiring gains and a continued housing recovery helped the U.S. economy grow throughout the country in January and February, according to a survey released Wednesday by the Federal Reserve. The Fed says 10 of its 12 banking districts reported moderate or modest growth, while Boston and Chicago districts reported slow growth. Consumer spending increased in most regions, although growth slowed in many districts and much of the increases were driven by auto sales. Many districts said that consumers pulled back slightly on spending outside of autos after seeing taxes rise and gas prices increase. Some also expressed concerns about federal spending cuts that started on March 1. Housing markets showed more strength in nearly all parts of the country, while manufacturing showed modest improvements in most regions. And most districts reported some improvement in individual jobs markets. (MORE: Fed Survey: US Economy Picked Up at End of Year) The report, called the ...
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US Economy Barely Grew in Q4, But Rebound Likely
(WASHINGTON) — The weakest quarter for the U.S. economy in nearly two years may end up being a temporary lull. Economists think growth has begun to pick up on the strength of a sustained housing recovery and a better job market. The economy grew at an annual rate of just 0.1 percent from October from December, a government report Thursday showed. That’s only slightly better than the Commerce Department’s previous estimate that the economy shrank at a rate of 0.1 percent. And it’s down from the 3.1 percent annual growth rate in the July-September quarter. Economists said the weakness last quarter was caused by steep defense cuts and slower company restocking, which are volatile. Residential construction, consumer spending and business investment — core drivers of growth — all improved. Steady job growth will likely keep consumers spending, despite higher Social Security taxes that have cut into take-home pay. Analysts think growth is picking up in the January-March quarter to ...
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