eBusiness Weekly
With key data from the Commerce Department, including the fourth-quarter gross domestic product report, still delayed because of the government shutdown, the employment report will be scrutinized for signs on the economy’s path.
The Fed on Wednesday kept interest rates steady but said it would be patient in raising borrowing costs further this year. The U.S. central bank removed language from its December policy statement that risks to the outlook were “roughly balanced.”
Clouds have been gathering over the economic expansion, now in its ninth year and the second longest on record, with business and consumer confidence deteriorating in recent months. Confidence has been eroded by the fight over the government budget and Washington’s trade war with Beijing.
The Fed hits pause on rate hikes
Other headwinds to the economy include the fading boost from a $1.5 trillion tax cut, slowing growth in China and Europe, as well as the risk of a disorderly departure by Britain from the European Union.
Job growth likely slowed across all sectors in January. Employment at construction sites likely cooled after surging by 38,000 jobs in December. Manufacturing payrolls are forecast rising by 17,000 after increasing 32,000 in December.
“While the Fed will remain in its ‘patient and waiting’ mode for the time being, continued strong U.S. data over the coming months would provide reassurance to the Fed that the U.S. economy can withstand further hikes,” said Veronica Clark, an economist at Citigroup in New York. – Reuters
