The national unemployment rate inched up to 3.9 percent in February, up 0.3 percent from the rate recorded one year ago. At nearly four percent, this is the highest unemployment rate since early 2022, a sign that the labor market is softening in a high-interest rate environment. Although the percentage of workers without a job increased, the US economy did add 250,000 jobs last month, bringing the total size of the labor force up to 167.4 million from 166.2 million a year ago. The labor force participation has held steady at 62.5 percent over the last year.
Federal Reserve officials provides an update on their economic outlook
The Federal Reserve’s Free Open Market Committee (FOMC) held the federal funds rate (FFR) at 5.25 to 5.50 percent for months as it evaluated the impact rate hikes have had on the economy.
While inflation has come down, it remains above the Fed’s target of keeping price increases under an annualized rate of 2 percent. However, it is still rising, driven by increasing housing prices. Federal Reserve Governor Michelle W. Bowman spoke about the current state of the economy and the central bank’s thinking earlier this week. “We had also seen signs of the labor market coming into better balance, but recent strong jobs reports—including upward revisions to employment growth—show a continued tight labor market,” argued Gov. Bowman. The official also spoke to solid consumer spending and the need for the bank to continue its “restrictive”…
