A Little Heat in Jobs Report Would Give Fed Green Light for Bigger Rate Hike

  • Weaker data would potentially keep quarter-point move in play
  • Payrolls, unemployment rate and wages all will be critical
Powell Says No Decision Made on Pace of Fed Rate Hikes
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Federal Reserve Chair Jerome Powell said returning to big interest-rate hikes depends on more than just Friday’s jobs report, but economists reckon just a little strength in the data will be all it takes.

Policymakers will scrutinize the February figures for three key indicators: payrolls, wage gains and the unemployment rate. If they all point to a robust labor market — perhaps even just slightly stronger than forecast — that will be a green light to a bigger hike, likely reducing suspense in the inflation reports due next week.