government bond prices initially rose as traders focused on the disappointing wage growth, which investors saw as keeping the Fed on a gradual path of interest rate increases this year. But with the economy near full employment, some economists are skeptical of the 4 percent growth pledge. The small gain lowered the year-on-year increase in earnings to 2.5 percent from 2.8 percent in December.Economists say a growth rate of between 3 and 3.5 percent in wages is needed to lift inflation to the Fed's 2 percent target. Sluggish wage growth, if it persists, would suggest little urgency from the Fed to tighten monetary policy.The pace of rate hikes will, however, probably depend on how much inflation is generated from Trump's proposed measures to bolster economic growth. The housing sector led the construction job gains.Retail payrolls, surprisingly surged 45,900, the biggest rise since February.

Source: The Star February 03, 2017 21:22 UTC