Employers in the U.S. took on more workers in March than a month earlier and the jobless rate fell, indicating companies were confident sales will rebound from a weather-related setback, according to economists.
The Federal Reserve will probably discard its 6.5 percent jobless rate threshold while adopting qualitative guidance for signaling when it will consider raising the benchmark interest rate, economists said in a survey.
Manufacturing and consumer confidence improved in February and housing stabilized last month, indicating the U.S. economy is shaking off the effects of the harsh winter and loss of momentum at the end of 2013.
The U.S. economy may prove more prone to deflation than the Federal Reserve acknowledges and that may present a reason to keep monetary policy loose, according to a model created by Wells Fargo Securities LLC.
The U.S. economy isn’t recovering fast enough to restore the level of jobs seen before the recession started in December 2007, said John Silvia , chief economist at Wells Fargo & Co. in Charlotte, North Carolina.
After misleading investors with a time line for tapering its unprecedented stimulus, the Federal Reserve now is stressing that any reduction in bond purchases will depend on the economic outlook -- and the message is sinking in.
The recent rebound in hiring doesn’t mean the U.S. is experiencing a robust economic expansion, and further stimulus measures wouldn’t remove obstacles to growth, said John Silvia, chief economist at Wells Fargo Securities LLC.
The U.S. government can avoid a default for at least a month after the Aug. 2 deadline to lift the debt ceiling set by the Treasury Department, said John Silvia, chief economist at Wells Fargo Securities LLC.