Job Market
Why was the labor report so surprising and why is it important?
The number of jobs added was almost double what was predicted, and shows that the labor market is strong and the Fed does not need to cut rates to promote job growth.
How much have hourly wages grown in January?
Wages have grown 0.6%
Can the government control the policy actions of the Fed? Why is this the case?
The government cannot control the policies of the Fed and this is to ensure the policies enacted are made with the wellbeing of the economy in mind, and not to follow a political agenda.
What is seasonal hiring?
When businesses hire more workers during a certain time period to compensate for an annual rise in demand around that time. (Example: retail stores hiring more workers around the holidays)
Why does the US target inflation of 2%?
This is a good level that encourages firms to produce more goods, while also ensuring that the currency is not devalued too much over time.