The U.S. economy added just 113,000 new jobs last month, the Wall Street Journal reports.
“The labor market in January registered weak gains for the second straight month, a slowdown that could heighten fears about the recovery and may lead some to call on the Fed to reconsider its easy-money strategy. The unemployment rate fell to 6.6%.”
Matt Yglesias: “The payroll survey, which is generally considered more accurate, shows small job growth. The household survey shows rapid job growth. So it’s not 100 percent clear what’s happening.”
“This is why in a sense even the falling unemployment rate may be bad news.”
“The low participation rate and subsequent low unemployment rate create pressure for Janet Yellen to implement tighter money. She needs to ignore that pressure.”
“It’s clear that the taper is only exacerbating other problems in emerging markets.”