Parker & Boyd Reviews The US Economy
Parker & Boyd were pleased with the February jobs report, which showed job growth of 192,000 overall and of 222,000 in the private sector.
- (1888PressRelease) March 19, 2011 - After getting off to a slow start, the U.S. economy is now in the early stages of a multiyear expansion that should return output, employment and inflation back to more normal levels.
Most signs look positive. Growth is likely to accelerate this year compared with last year, and accelerate next year compared with this year. Still, it could take until late 2013 for the unemployment rate to drop back to 6%.
Parker & Boyd were pleased with the February jobs report, which showed job growth of 192,000 overall and of 222,000 in the private sector. We'll see more similar-type gains in months ahead.
Parker & Boyd predicting gains of about 200,000 private-sector jobs each month for the rest of the year, enough to bring down the unemployment rate from 8.9% to about 8.25% or 8.5% by the end of the year. It's been a slow process of recovery, a testimony to just how deep the recession was.
Things are happening a little faster than the Fed anticipated, and it will probably fulfill its commitment to buy $600 billion in bonds, then stop and wait to see what develops. There's currently a lot of slack in the economy for inflation to get a firm toehold. In the trade-off between growth and inflation at this point, the Fed will err on the side of too much growth, knowing it can correct course if inflation heats up. Strong demand in places like China bears most of the responsibility for the run-up in commodity prices, not the Fed's easy-money policies.
After watching the dot-com and housing bubbles emerge in periods of low interest rates, Fed policy makers are well aware of the dangers of keeping monetary policy too loose for too long.
Parker & Boyd is a premier provider of seed and early stage venture capital for innovative technology companies. Parker & Boyd has special expertise in co-founding and building technology companies from startup. While financial return is imperative, our greater mission is to initiate innovation and inspire the entrepreneurial spirit to thrive
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