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Reuters: Lower Jobless Rate Is Warning For Fed

From a suddenly shifting Reuters:

U.S. job growth misses expectations, offers cautionary note for Fed

By Lucia Mutikani | September 6, 2013

WASHINGTON (Reuters) – U.S. job growth was less than expected in August and the unemployment rate hit a 4-1/2 year low as Americans gave up the search for work, complicating the Federal Reserve’s decision on whether to scale back its massive monetary stimulus later this month.

Nonfarm payrolls increased 169,000 last month, the Labor Department said on Friday, adding to signs that economic growth may have slowed a bit in the third quarter.

Funny, that’s not we’ve been hearing.

The unemployment rate fell to 7.3 percent, the lowest since December 2008.

So why aren’t they popping the champagne corks? Here’s why:

U.S. financial markets took the generally weak report as a sign the Fed was less likely to make an announcement on the future of its bond buying program at its meeting this month… The dollar fell sharply against the yen on the data, while prices for U.S. Treasury debt rallied. U.S. stock index futures rose to session highs.

In any case, Reuters still wants to throw cold water on even the thought of ever ending QE3:

Economists polled by Reuters had expected job gains of 180,000 last month and for the unemployment rate to hold steady at 7.4 percent. Not only did hiring miss expectations last month, the job count for June and July was revised to show 74,000 fewer positions added than previously reported.

They revised the last two months jobs figures down? What a shock!

In addition, the participation rate – the share of working-age Americans who either have a job or are looking for one – dropped to its lowest level since August 1978…

Reuters are so desperate to prevent the end to Quantitative Easing they even report on the terrible labor participation rate. Something they would have never done before the 2012 elections.

The employment report will be scrutinized by policymakers from the U.S. central bank at their meeting on September 17-18. They had been widely expected to make an announcement on the future of its $85 billion (54 billion pounds) per month bond-buying program at that meeting.

Fed officials have made clear that they would base their decision on the progress the labor market has made since they launched their third round of ‘quantitative easing’ a year ago. When they pulled the trigger, they were looking at a jobless rate that stood at 8.1 percent…

So the marching orders have gone out to the news media. They must point out how bad unemployment really is. No matter what the lying figures say.

This article was posted by Steve Gilbert on Friday, September 6th, 2013. Comments are currently closed.

3 Responses to “Reuters: Lower Jobless Rate Is Warning For Fed”

  1. yadayada

    $85 Billion a month starting a year ago is over $1Trillion in debt over and above the $1T/yr deficit spending in opie’s budgets.
    can people really be that low info that they don’t see this?




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