US unemployment expected to hit 17-year low, making faster rate hikes more likely
Washington — US jobs growth probably rose at a brisk clip in February, to push the unemployment rate down to a low of more than 17 years at 4% — wage gains are expected to have slowed after three straight months of strong increases. The closely watched employment report from the Labor Department on Friday is expected to underscore the economy’s strength and bolster expectations that the Federal Reserve will raise its interest rate forecasts for 2018. US financial markets have almost priced in an interest rate increase at the Fed’s March 20-21 policy meeting. The Fed’s current outlook is for three interest rate increases this year. "A stronger jobs report with another healthy crop of wage gains increases chances that the Fed may add a fourth rate hike before year’s end," said Beth Ann Bovino, US chief economist at S&P Global Ratings in New York. Nonfarm payrolls probably increased by 200,000 jobs last month amid unseasonably mild weather, according to a Reuters survey of economists, ...
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