The US labor market added 267,000 jobs in the private sector last month, the government reports–quite a bit more than the consensus forecast was looking for. The Labor Department also revised the data for recent history and today’s release shows that growth has been stronger than previously estimated. In addition, the latest figures show that wage growth picked up. Bottom line: the news is quite bullish, building on recent strength and, in the process, boosting the odds that the Federal Reserve will start raising interest rates in the near term, perhaps as early as June, according to some forecasts.
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Warren Buffett has his doubts, and so do plenty of other analysts. Weak economic activity overseas is arguably a factor that could delay the onset of US tightening. Based on the domestic trend, however, the case for raising rates soon is compelling, according to Cleveland Fed President Loretta Mester, who said earlier this week that “if incoming economic information supports my forecast, I would be comfortable with liftoff in the first half of this year.”
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