U.S. labor market tightening; inflation pressures building

[mahatmakanejeeves]

Source: Reuters

Business News | Thu May 11, 2017 | 11:37am EDT

U.S. labor market tightening; inflation pressures building

By Lucia Mutikani | WASHINGTON

New applications for U.S. jobless benefits unexpectedly fell last week while producer prices rebounded strongly in April, pointing to a tightening labor market and rising inflation that could spur the Federal Reserve to raise interest rates in June.

Labor market strength was also underscored by a sharp drop in the number of Americans on unemployment rolls to a 28-1/2-year low in the final week of April.

"The best labor market in nearly 30 years should tell Fed officials that additional monetary stimulus is not required. We expect them to put another rate hike notch on their belts at the upcoming June meeting," said Chris Rupkey, chief economist at MUFG Union Bank in New York.

Initial claims for state unemployment benefits fell 2,000 to a seasonally adjusted 236,000 for the week ended May 6, the Labor Department said on Thursday, confounding economists' expectations for a rise to 245,000. ... It was the 114th straight week that claims remained below the 300,000 threshold which is associated with a healthy labor market. That is the longest such stretch since 1970, when the labor market was smaller.

Read more: http://www.reuters.com/article/us-usa-economy-unemployment-idUSKBN1871LW

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BLS report: Import prices advance 0.5% in April, up 0.3% excluding fuel; export prices up 0.2%
https://www.democraticunderground.com/111680297

We now return you to all-45, all the time.

[FairWinds]

1. The Danger that America might actually get a raise . .

for the first time in about 50 years.

the horror, the horror !!

Note how the MSM (Reuters in this case) sees nothing good coming of this.

GRRRRRRR !!

[mahatmakanejeeves]

2. "Note how the MSM (Reuters in this case) sees nothing good coming of this."

I don't see that this is anything other than a news article. Can you elaborate?

[FairWinds]

3. the wages of average Americans have indeed not increased . .

much at all for decades - it is called "wage stagnation," and there is
a considerable literature on it.

So when, FINALLY, a hint that wages might tick upward for regular folks,
you would think that this would be hailed as good news.

if so, you would be wrong.

All we really get from Reuters is that, ". . a tightening labor market and rising inflation that could spur the Federal Reserve to raise interest rates in June."

which of course will slow the economy and put people out of work !!!

FYI, one mandate of the Fed is to ". . promote maximum employment, ."
a responsibility it regularly ignores.

Hope this is clear enough - the point is that the MSM reports from the point of
view of the ONE PERCENT