Economy Ready To Add More Than 88,000 Jobs A Month, But Watch Out For The Sequester
The latest jobs report revealed economic activity is weaker than previously thought, with only 88,000 jobs added in March. It raised the alarm bells, suggesting to many the Federal Reserve will continue its monetary stimulus via quantitative easing. But, underlying labor market trends suggest this isn’t an 88,000-a-month job market, according to Nomura, which expects the labor market to add an average 135,000 to nonfarm payrolls on a monthly basis in the second quarter. This marks a decline from the first quarter average, as a slower economy and the impact of the sequester take hold. Bernanke and the Fed's monetary stance remain the main support behind the recent rally in stocks and other risk assets.