U.S. employers add 311K jobs last month

New data shows the economy added 311,000 new jobs in February, and that means the Federal Reserve could soon be moving ahead with another rate hike. Yep, Caroline Shively breaks down today's report and its impact on President Biden's budget proposal. President Biden's celebrating a stronger than expected jobs report Friday. Happy to report that our economy has created over 300,000 new jobs last month. Paychecks also grew by 0.2 percent, slightly lower than January's rate. The growth is making workers happy, the Fed worried, and Wall Street nervous.

More jobs and growing wages can contribute to inflation, putting pressure on the Federal Reserve to raise interest rates the last thing Wall Street wants. I feel that the Fed will have to raise rates at least by 50 basis points next time around and have to push the Fed fund's rates to at least 6 percent. The news comes a day after President Biden released his budget proposal. His plan adds $2.6 trillion in new spending over 10 years and brings in $5.5 trillion in revenue paid for by tax hikes on corporations and the wealthy. But first, it has to make it through the House.

President Biden, your budget is dead on arrival. The House Freedom Caucus, composed of fiscal conservatives, pledged that members won't vote to raise the debt ceiling without $130 billion in spending cuts. It is the baseline of shrinking Washington and not just growing America, but doggone it, saving America. If the debt ceiling isn't raised by the summer, the country will default on its debt. The default on our debt would trigger an economic and financial catastrophe. The next economic indicator to watch, the Consumer Price Index, out next week.

economy, jobs, joe biden, jobs report, unemployment rate, united states