The February jobs report brings good news for workers, but also new worries about the possibility of an interest rate hike by the Federal Reserve.
According to the report, employers added more than 300,000 jobs last month, and paychecks grew by 0.2 percent, slightly lower than January’s rate.
The news is making workers happy, but it’s causing concern for the Federal Reserve and Wall Street, as more jobs and growing wages can contribute to inflation.
This puts pressure on the Federal Reserve to raise interest rates, something that Wall Street is not looking forward to.
President Biden celebrated the report, but his budget proposal adds 2.6 trillion dollars in new spending over 10 years, which will be paid for by tax hikes on corporations and the wealthy.
However, his plan has to make it through the house, and the Freedom Caucus has already pledged not to vote to raise the debt ceiling without spending cuts.
The next economic indicator to watch is the Consumer Price Index, which will be released next week.
