Weak Hiring Pushes Back Fed’s Plans
by: Harriet Torry
Jun 04, 2016
SUMMARY: The U.S. job market notched its weakest monthly gain in more than five years, knocking down expectations for a Federal Reserve rate increase and stirring worries about the seven-year-old economic expansion. The weaker-than-expected report almost certainly takes a rate increase by the Fed at its June 14-15meeting off the table and also complicates the possibility of a move at the July meeting. The dollar and bond yields, after rising in recent weeks in anticipation of higher interest rates, weakened in the wake of the report’s release. The greenback fell 1.7% against a basket of six currencies and the yield on the benchmark 10-year Treasury note fell to 1.702%, near its 2016 low. Stocks slipped, with the Dow Jones Industrial Average losing 31.50 points, or 0.2%, to 17807.06.
1. Employers added 38,000 jobs in May. How long has it been since job growth was this weak?
2. Why would a weak jobs report knock down expectations for a Federal Reserve rate increase and stir worries about the seven-year-old economic expansion?
3. Why do you think the dollar fell, the yield on the 10-year Treasury note fell, and the Dow Jones Industrial Average fell on news of weak job growth?
4. Nearly half a million people dropped out of the workforce last month, dragging down the share of Americans participating in the labor force by 0.2 percentage
Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.
You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.Read more
Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.Read more
Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.Read more
Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.Read more
By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.Read more