9 Mar 2015
Fed: June hike a possibility - Westpac
FXStreet (Bali) - The strong US report supports the Fed removing its “patient” language later this month and makes a June hike a possibility, notes Westpac Economics Team.
Key Quotes
"US non-farm payrolls rose in Feb, by 295k vs 239k in Dec and 235k expected (revisions -18k). The unemployment rate improved from 5.7% to 5.5%, although earnings remained soft, rising only 0.1% (vs 0.5% in Dec). Participation slipped from 62.9% to 62.8%. Overall this is a strong report, which supports the Fed removing its “patient” language later this month and makes a June hike a possibility. However, a September hike is just as likely, since wages, participation and inflation remain soft."
Key Quotes
"US non-farm payrolls rose in Feb, by 295k vs 239k in Dec and 235k expected (revisions -18k). The unemployment rate improved from 5.7% to 5.5%, although earnings remained soft, rising only 0.1% (vs 0.5% in Dec). Participation slipped from 62.9% to 62.8%. Overall this is a strong report, which supports the Fed removing its “patient” language later this month and makes a June hike a possibility. However, a September hike is just as likely, since wages, participation and inflation remain soft."