1--Higher Jobless Rate Suggests Economy Has Room to Run-- Unemployment rate ticked up to 4.8% amid an increase in the share of Americans working or actively seeking work
Those with jobs still aren’t seeing the big wage gains that characterized more prosperous economic expansions of the past. The average hourly paycheck grew just 3 cents over the month—and 2.5% over the year—despite millions of workers receiving raises under minimum-wage laws across 19 states at the start of the year. It is better, however, than the 2% rates that prevailed earlier in the expansion...
Some economists have argued that Mr. Trump’s goal of lifting growth to 4% would be too rapid, given the economy’s current capacity, and could ultimately require an intervention by the Fed, which might have to raise interest rates more quickly to prevent excessive inflation.
The more aggressive fiscal policy is, the more aggressive the Fed will be,” said Nomura economist Mark Doms, former chief economist at the Commerce Department.
Quicker action on interest rates would ultimately prevent the economy from achieving Mr. Trump’s economic target. “If you have the Fed hitting the brakes really hard, he’s not going to get as much bang as he had hoped” for his economic plans, said Mr. Doms. The latest jobs data, with a higher unemployment rate and modest growth in wages, “may head off the collision” between the central bank and the president in the near term, he said.
Republicans in Congress are preparing to release plans to roll back the 2010 Dodd-Frank financial overhaul as early as this week, following an executive order by President Donald Trump seeking a broad review of the Obama-era law.