The Conference Board's Gad Levanon considers the January report a ''relief.'' He says the strong wage gains suggest several rate hikes are in store.
A big slowdown in jobs growth the US economy added 151000. Jobs in January the unemployment rate dipped to four point 9%. Let's decipher what this all means of god Lebanon Heatley economist with the conference board welcome back that it's a smaller than expected rise in jobs but the jobless rate. Fell what is expected to hold steady so. What does this say about the recovery immediately. Even though the toppling number came and he can be no expectation I actually like take away from this book is more. Relief didn't disappointment. I think. You know some looks from Quebec was expected after that life is strong growth in jobs in the fourth quarter. And then there are other. House of don't for the two of an encouraging so that that as you mentioned unemployment rate. Went down to four point 9% despite. The participation might going to happen and making more and most importantly the wage growth. Accelerated it to two and a half but since you're over you which is good for a paycheck. Well what impact it Bellwether Havel overall given that January it was a usually on December isn't usually a war. I think it did to be probably. Had this some poor bed care as a result of that team in construction may be about some. Industries but. I think cared. Overall you know did them for months to months and I'm Bozo so noisy so. It did 260000. That we had to defend two way even more in November were. Unrealistically high and 150 is probably in the two below trend now in god you see this a report. As as a relief. Does the drop in jobs created signal I don't shifting economic growth. Or is it just reversion to the mean. I think. You know I mean you can look at more or less optimistic than I was in a month or two ago something that the turbulence in the financial market is not. Helping but I think it's more reversion to demean dead and beginning go from major slowdown in the US economy I think to a few. Especially. Facto there weave in domestic demand to tone it contributing nicely did consumer spending and housing and a good government spending go. Holding their steady and they I think I don't expect any major slowdown in the coming months. You noted earlier how that wages of bounced back strongly so what does this mean from the Fed being able to get that inflation rate target. But I think at the moment. Very few people actually worrying about inflation right now I think for good reasons. We Dave cook ongoing drop in gasoline crisis and with the strengthening of the don't know. But I think it is 27 and 27 team Wednesday labor market continuing to tighten. I think you leave here feeling it price pressures from stronger wage growth. So any info for veterans and anything that days. Decision to raise rates and last month there aren't samba. Was a reasonable 1 and I am actually thinking that the market market is underestimating. Game hikes for the rest of the way I wouldn't be surprised if we see. Two or even maybe three more hikes in 26 to. So this will not derail the Fed up from its plans that he's good data that it is an hour. We I think you know that that everyone keeps getting surprised by how. If it's done well entreaties is in decline in game I think don't structurally is mostly that it did retirement of the baby boomers behind it. And I think that we continue so I think. Guy you know. And said before be it from Finland so to a going expected for a rate hikes in 2016 and I don't know Moret. India Italy for a range of two to three but today and looked over market but if it pays. Not expecting any really tight and I think you'll be surprised I'll write things like for us. Our thanks to god eleven out of the conference board I'm Fred Katayama this is Roy.