Apr 03 2015

Rate Range Projection by Bank 

Next week 118.00- 121.00

Next 3 months 115.00 - 127.00

 

The latest sign of weakness in the economy and one likely to further delay an anticipated interest rate increase by the Federal Reserve. The employers added the fewest number of jobs in more than a year in March, The Non farm payrolls rose 126,000 last month, less than half February's pace and the smallest gain since December 2013, the Labor Department said on Friday. Leisure and hospitality also saw a sharp slowdown in jobs growth, suggesting harsh winter weather could have dragged on hiring. While the jobless rate held at a more than 6-1/2-year low of 5.5 percent, the workforce shrank. T The labor force participation rate returned to a more than 36-year low reached late last year. It will weaken the argument for a mid-year (rate) hike," said Milan Mulraine, deputy chief economist at TD Securities in New York. The tepid increase in payrolls ended 12 straight months of job gains above 200,000 - the longest streak since 1994. The report confirms the emerging narrative of slowing growth momentum seen in the other economic indicators. After the robust stretch, the jobs figures now appear more in line with other signals from consumer spending to housing starts and manufacturing that have suggested the economy grew at a sub-1 percent annual rate in the first quarter. Economists had forecast that payrolls would rise 245,000 last month. Prices for U.S. government debt rallied as investors pushed back their expectations for a Fed rate hike, while U.S. stock index futures fell about 1 percent. The dollar dropped against a basket of currencies. In addition, data for January and February were revised to show 69,000 fewer jobs created than previously reported, giving the report an even weaker tone. The U.S. central bank has kept overnight interest rates near zero since December 2008, but a number of officials have said an increase will likely be considered at its June policy-setting meeting. While economic growth is expected to rebound, it appears increasingly unlikely the Fed will have sufficient signs of strength in hand by then The Sung Won Sohn, an economics professor at California State University Channel Islands in Camarillo. June date is not off the table, however, assuming the economy and employment rebound,.