Despite a disappointing jobs report Friday that raised fresh questions about the nation’s economic strength, analysts say they still believe the Federal Reserve will start pulling back on its stimulus program in a few weeks.
The Labor Department’s snapshot of the job market in August had several discouraging details underneath a relatively mundane headline number, which showed the economy added an estimated 169,000 jobs. Perhaps the most striking was a plunge in the share of Americans who are either working or looking for work, which fell to its lowest level since 1978.
Earlier estimates of job growth in July and June were revised sharply downward.
Still, economists said they believed that Fed governors would find enough bright spots in this report to justify scaling back their monthly purchases of long-term Treasury bonds and mortgage-backed securities after their next meeting Sept. 17 and 18.
— From wire reports