Feb 06 2015

Rate Range Projection by Bank

 Next week 117.50- 119.50

Next 3 months 112.00 - 125.00]

 

bolstering views consumers will have enough muscle to carry the economy through rough global seas.U.S. job growth rose solidly in January and wages rebounded, a show of economic strength that put a mid-year interest rate increase from the Federal Reserve back on the table. Nonfarm payrolls increased 257,000 last month, the Labor Department said on Friday, outstripping Wall Street forecasts. And at the same time, data for November and December was revised to show a whopping 147,000 more jobs created than previously reported. 

 

There was good news on many fronts," said Sung Won Sohn, an economics professor at California State University Channel Islands in Camarillo "A mid-year lift-off in the interest rate is fait accompli ... At 423,000, November's gain was the largest for any month since May 2010, when employment was boosted by government hiring for a national census. Over the past three months, more than one million jobs have been created, the first time that milestone has been reached since late 1997.The unemployment rate rose one-tenth of a percentage point to 5.7 percent, but that was because Americans poured into the labor force to hunt for work in a show of increased confidence.The dollar rallied against a basket of currencies and prices for U.S. Treasury debt fell as investors brought forward bets on a rate hike. U.S. stocks were trading marginally higher. Before the report, they were pointing to October, and now  Rate futures shifted to show traders now expect a rate increase in September.