The February jobs report released on Friday showed that the economy added 311,000 jobs, which is higher than economists predicted.
However, wage growth slipped to 0.2 percent, which is a slight dip from January.
This mixed news report suggests that the economy is moving in the right direction, but a hotter than expected labor market can still feed inflation, putting pressure on the Federal Reserve to raise interest rates once again at their meeting on March 22nd.
This may make the Fed more cautious about doing 50 basis points instead of 25 basis points, but they are likely to continue hiking for a while.
The report comes one day after the President presented his budget proposal for the 2024 fiscal year, which adds 2.6 trillion in new spending over the next 10 years but brings in 5.5 trillion more in revenue thanks to tax hikes on the wealthy.
The White House is now calling on House Republicans to come out with their own budget proposal.