5/12/2017, 6:34 PM (Source: TeleTrader)
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Fed's Harker sees jobless rate going down to 4.2%

Hiring in the United States will average 200,000 this year, helping sending the headline unemployment rate to as low as 4.2% by the end of 2018, said Patrick Harker, president and chief executive officer of the Federal Reserve Bank of Philadelphia. Before the end of the year after that, job growth should come down to 100,000, he added in a speech on Friday and stressed the quits rate is rising. The trend indicates more people are switching to higher-paying positions.

Harker, this year a voting member of the Fed's monetary policy panel, also said labor force participation has improved in the past 12 months despite demographic pressure. "All in all, we’re looking at a labor market more or less at full health, with very little slack," he stressed and estimated the 2% target inflation will be reached by the end of 2017. However, he trimmed his forecast for economic growth by 0.1 percentage points to 2.3%. In the central banker's view, two more quarter-point increases in the benchmark rate of interest remain appropriate for this year.

Baha Breaking News (BBN) / IT