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Weak jobs data underscores Fed’s dilemma as war stokes inflation risk
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Before March 6’s jobs report, Fed officials had been widely expected to hold rates steady at their next policy meeting on March 17-18.
PHOTO: REUTERS
Colby Smith
- February's jobs report showed a significant decline, with 92,000 positions lost and unemployment rising to 4.4 per cent, raising concerns for the Federal Reserve.
- Austan Goolsbee of the Chicago Fed called the report "tough" but cautioned against overreaction, citing weather and strikes as potential factors, while noting unemployment remained stable.
- The Fed faces the challenge of balancing a weakening labour market with persistent inflation above the 2 per cent target, complicated by the Middle East conflict's potential impact.
AI generated
New data on March 6 showing a sharp decline in monthly jobs growth has put the Federal Reserve in a tough position as it simultaneously grapples with heightened concerns about inflation amid the widening Middle East conflict.
February’s jobs report showed employers shedding 92,000 positions for the month as the unemployment rate ticked slightly higher to 4.4 per cent. In another warning sign, December and January jobs growth was revised down by 69,000.
