WASHINGTON (Reuters) – U.S. employers kept a robust speed of working with in February, offering the economy a strong boost as it challenges the coronavirus outbreak that has stired financial market worries of an economic downturn and prompted an emergency situation rate of interest cut from the Federal Reserve.
FILE IMAGE: Veterans and military personnel go over task opportunities at a military job fair in Sandy, Utah, U.S., March 26,2019 REUTERS/George Frey
The Labor Department’s closely watched month-to-month work report on Friday also revealed solid regular monthly wage development and the unemployment rate falling back to near a 50- year low of 3.5%. Employers likewise increased hours for workers last month.
But the report likely does not totally capture the effect of the coronavirus, which spread out in the United States starting in late February, leaving financial markets and economic experts anticipating severe economic disturbances in the months ahead. The dollar fell against a basket of currencies, while U.S. Treasury costs were trading higher. U.S. stock index futures fell.
” Sadly, these task numbers are sure to be eclipsed by reaction to the spread of the coronavirus,” said Michael Hicks a financial expert at Ball State University. “The supply shocks from quarantined factories in Asia are weeks far from idling U.S. factories, and the demand-side effect on tourist, travel, drinking and eat establishments is currently being felt throughout the world. The March tasks report, will be far less optimistic.”
The Fed on Tuesday slashed its benchmark over night rate of interest by a half portion point to a target series of 1.00%to 1.25%, in the U.S. central bank’s first emergency situation rat