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Jobs Report Validates Fed on Both Patience and Economic Strength

  • Payrolls top forecasts while monthly wage gains cool
  • Further strength could push Fed back in direction of hikes
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U.S. payrolls rose by 304,000 in January and the jobless rate rose to 4%. Bloomberg’s Mike McKee reports.Daybreak: Americas." (Source: Bloomberg)
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The Federal Reserve’s decision to pledge patience on future interest-rate hikes amid a healthy economic expansion won validation from a jobs report that showed robust hiring and measured wage gains.

Hiring jumped by the most in almost a year, topping all forecasts in a Bloomberg survey of economists, albeit after a downward revision to the prior month, a Labor Department report showed Friday. While pay increases cooled from December, annual gains firmed up in recent months without signaling major inflation pressures that would worry Fed officials.