Riffrag Business & Finance Report

WASHINGTON – U.S. economic activity (U.S.) in 12 states in February rose moderately. Economy predicted even better if not the snow storms in some areas.

“Economic conditions continued to grow since the last report, although a bad snowstorm in early February has resulted in activity in several districts paralyzed,” said Federal Reserve (Fed), in an official report (Beige Book) Wednesday. The level of loss of employment in the agricultural sector rose in February. This means, there has been the highest decrease in the services sector over the last two years.

While production rose two-thirds of U.S. production. The Fed said the labor market shocks current weak economic conditions continue to grow. Data Thursday (26/2/2010) and shows the level of unemployment benefit claims rose to its highest level for three months. But, there is a trend that the claim has reached the top.

Recent data unemployment claims will be the final decision in a monthly government report. This report is a key indicator of economic momentum. Analysts rate, severe winter in some areas make hard economic data to reference. “Upcoming employment data are influenced two snow storms that occurred in the survey area,” said Robert Brusca of FAO Economics.

Although some predict the growth occurred in semester II/2009, economists assess the labor market under challenge berat.Tahun contraction in 2009 was the year in which the struggling economy to achieve sustained recovery from the worst crisis for a decade. U.S. growth in 2009 donated more than government spending and implement Fed policy rates near zero.

The data the U.S. Labor Department in February to give a bit of fresh air. Most analysts predict the unemployment rate rose to 9.8 percent from the position in January 9.7 percent. While the loss rate in non-agricultural wage unchanged at 20,000. The main index of strengthening the service sector showed better than forecast in February.

This sparked speculation that the recovery occurs in stages. The Institute of Supply Management explained, purchasing managers index (PMI) nonmanufaktur jumped 2.5 percent to 53 percent. Nonmanufaktur performance surpassed the previous forecast of economists estimate rises to 51 percent. As is known, the above figures indicate a 50 percent growth.

Analysts assess the performance of key sectors in the month of February is the highest in two years last. “V-shaped recovery occurs earlier in the manufacturing sector, and service sector now starting up as well,” said the FT Advisors Chief Economist Brian Wesbury.

ADP payroll advisory company reported that the number of termination of employment (FLE) conducted the private sector in February fell to 20,000 workers compared to 60,000 recorded in January pekerja.Ryan Sweet of Moody’s Economy.com ADP report is considered appropriate.

“Describing how the workers get an appropriate salary without interference from the storm,” he said. According to Ryan, ADP payroll calculations are actual, as opposed to survey the U.S. Government. “ADP survey also calculates a short-term leave of absence during the storm,” he explained. Beige Book report that made the Fed gives a bad picture of the labor market.

“While some districts reported an increase of new employment or a drop in layoffs, the general labor market across the country is still weak. This provides a weak pressure on wages, “the Fed report said, which will be used by the Federal Free Market Committee (FOMC) as a basis for policy decisions on March 16 next.

While Brian Bethune of Global Insight IHS argued, the U.S. central bank to signal that the economic momentum in the late 2009 improvements. He predicts the Fed will keep monetary policy accommodative, including low interest rates until the end of 2010. “As seen increased economic momentum, excess plant capacity and the labor market is still waiting to use,” he explained.

Fed Sanction Limit Credit Card

Last Wednesday the Fed proposed the new rules to strengthen consumer protection on the arrogance of the credit card issuer, including limiting the number of penalties and higher interest rates. Credit card issuers are prohibited wearing a penalty for late payment.

For example, credit card issuers are prohibited wearing a $ 39 penalty if the holder fails to carry out a credit card minimum payments USD20.Penerbit may impose sanctions only for $ 20. “These new rules to prevent credit card issuers impose large penalties for small mistakes made and revise plan of consumer interest is rising earlier this year,” said Federal Reserve Board Governor Elizabeth Duke, in an official statement.

The same thing said U.S. Treasury Secretary Timothy Geithner. He had denounced the financial policy can not provide protection against consumer protection. Have independent authority to ensure consumer protection. “The U.S. needs an independent authority, accountable, and effective,” said Geithner told the U.S. Parliament.