Page 25 - ArubaToday
P. 25
BUSINESS A25
Monday 7 December 2015
Another month of solid US hiring clears way for Fed hike
C. S. RUGABER The U.S. economy “is strong Federal Reserve Chair Janet Yellen leaves after speaking at the Economics Club of Washington
AP Economics Writer enough to withstand an ini- in Washington. Yellen indicated that the U.S. economy is on track for an interest rate hike this
WASHINGTON (AP) — If the tial hike in interest rates from month, but the Fed will need to review incoming data before making a final decision.
Federal Reserve needed what were seen as emer-
any final evidence that the gency record-low levels,” (AP Photo/Susan Walsh)
economy is ready for high- said Chris Williamson, chief
er interest rates, it got it on economist at Markit. “A cern about future high in- of available jobs. And lay- than she did during a pre-
Friday. December rate hike now flation. offs are at very low levels. vious job search two years
A solid November job gain looks to be in the bag.” The Since the recession ended, Both figures point to strong earlier and even felt confi-
of 211,000 showed that economy’s strengths were average hourly pay has demand for workers. dent enough to turn down
despite weak overseas evident in last month’s hir- grown at only about two- “Companies are holding offers.
growth and struggling U.S. ing patterns: Construction thirds of the pace typical onto people pretty tightly, “This time, I felt like I could
factories, the U.S. economy firms added 46,000 jobs, of a healthy economy. and at some point that’s be a more picky,” said
appears healthy enough to the biggest increase in two In November, average going to manifest itself in Raminhos, 29.
withstand a Fed hike from years. Spending on con- hourly wages rose 2.3 per- higher wages,” said Mi- Dolega said wage gains
record-low rates later this struction projects, including cent from 12 months ear- chael Dolega, senior econ- are being held back by
month. The unemployment homes, roads and office lier to $25.25. That is below omist at TD Bank. “Their steep job cuts in mining,
rate remained at a low 5 towers, reached an eight- October’s annual increase, workers are going to get a category that consists
percent in November for a year high in October. which had been the stron- poached. They are going mostly of oil and gas drill-
second straight month, the In addition, restaurants gest in six years. It’s still far to have sweeten the deal ing and has shed 14 per-
government said Friday. added 31,500 positions, re- below the roughly 3.5 per- at some point.” cent of its jobs in the past
More Americans started tailers nearly 31,000. cent pace typical of a Sarah Raminhos landed a year. Government data
looking for jobs, and nearly Investors cheered the jobs strong economy. new accounting job last show that drilling firms were
all found them. report, which helped send Still, many economists say month at a firm in Chevy handing out big raises as
Average hourly pay rose, the Dow Jones industrial they’re optimistic that Chase, Maryland, with a recently as last year to at-
though modestly, and the average soaring 360 points Americans’ pay will keep salary about 5 percent tract workers, but average
government revised up in afternoon trading. rising. Companies are ad- higher than her old one. pay in the industry is now
its estimate of job growth This week, Fed Chair Janet vertising near-record levels She saw more opportunities declining. q
for September and Octo- Yellen said the economy
ber. Employers have now appeared to be improving
added a robust average enough to justify a rate hike
213,000 jobs a month over as long as no major shocks
the past six months. undermined growth before
The healthy jobs figures indi- the Fed meets Dec. 15-16.
cate that consumer spend- The Fed has kept its key
ing is helping the economy short-term rate at a record
surmount some lingering low near zero for seven
challenges. They include years. A Fed rate hike typi-
a strong dollar, which has cally lifts interest rates for
made exports pricier over- mortgages, auto loans and
seas and squeezed U.S. other borrowing, though
manufacturers, and sinking those increases might not
oil prices, which have led occur immediately.
drilling companies to slash For the Fed, conditions
orders for steel pipes and seem nearly ideal for a pe-
other equipment. riod of small and only grad-
Even so, Americans are ual rate increases in com-
spending more on restau- ing months: Job growth
rant meals and on big- has been solid, and wages
ticket items like cars and have begun to rise but not
homes. so much as to cause con-
European bank head Draghi says he’s ready to do more
KEN SWEET ing a speech at a meet- to ease investor concerns closed for the day struggled to keep the 19
AP Business Writer ing of the Economic Club Friday, repeating both in when Draghi appeared. countries that use the euro
NEW YORK (AP) — Euro- of New York on Friday. On his speech an in response U.S. stocks were sharply from economic contrac-
pean Central Bank Presi- Thursday in Frankfurt the to questions from a panel higher Friday, and they tion.
dent Mario Draghi said this ECB announced a slight that the ECB can expand extended their gains af- The ECB started its bond-
weekend the bank is ready cut in one of its key interest its bond-buying program, ter Draghi began speaking buying program in 2014,
to expand its economic rates, but it declined to step known as quantitative eas- at midday Eastern time. The several years after the Fed-
stimulus program if need up its monthly purchases ing, Dow Jones industrial aver- eral Reserve started its pro-
be, just after the bank’s of bonds, as investors had or cut interest rates even age closed up 2 percent. gram.
surprisingly modest steps to expected, to reduce bor- further, if necessary. The euro was mostly un- Draghi cautioned, though,
shore up the region’s econ- rowing costs for consum- When asked by one of the changed against the dollar that the ECB’s ability to
omy sent shudders through ers and businesses. Inves- panelists if was trying to at $1.0870, after surging on stimulate growth — even if
global financial markets. tor disappointment about clarify what the ECB did Thursday. it does take further action
“We are ready at any time the decision sent European this week, Draghi said jok- Europe’s economy has — is limited.
to recalibrate our array of stock markets to one of ingly: “No...not really. Well, lagged behind the U.S. “Our monetary policy can-
tools,” Draghi said. their worst days in months. of course.” since the financial crisis, not achieve everything,”
The comments came dur- Draghi seemed to want European markets were and policymakers have he said.q
