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erienewsnow.com 07 Jan, 2022 21:00 am

Stocks mixed after disappointing jobs report - Erie News Now

Stocks mixed after disappointing jobs report - Erie News Now
By Paul R. La Monica, CNN Business

That could bode well for consumer spending, even as it may also be raising fears that the Federal Reserve will step up plans to raise rates in order to fight inflation." However, the mixed jobs numbers may lead the Fed to only gradually raise rates this year."Wage growth being strong and the unemployment rate declining more than expected puts the Fed on a more hawkish trajectory with rate hikes," said Yung-Yu Ma, chief investment strategist with BMO Wealth Management.Investors are betting that Fed rate hikes will be gradual enough to not hurt demand for mortgages and other loans, and that higher rates will also make lending more profitable for financial firms.

But the unemployment rate continued to fall, and workers are still bringing home bigger paychecks."Today's jobs report raises the possibility of a March rate hike.

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