Ben Bernanke
Unemployment rate unchanged at 9.1% on flat jobs reportPosted by RJ and Makay on Sep 02, 2011 |
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Non-farm payrolls were unchanged in August as the U.S. economy failed to add jobs for the first time in 11 months, according to the Labor Department. The stagnant performance in was down sharply from a revised 85,000 gain in July jobs, and below economist’s consensus August forecasts of 60,000 new jobs. The unemployment rate also remained unchanged at 9.1%.
While many advisors are holding to their long-term bearish outlook on bonds, most are ratcheting down their short-term expectations for higher interest rates and economic growth. 10-year Treasury yields are still very low at around 3%, and short-term rates remain mere basis points. In January, Charles Schwab conducted a survey of more than 1300 advisors. At that time, 64% of respondents thought that inflation and T-Bill rates would rise in the next six months.
A continual low interest rate environment and stagnant loan growth are making financial firms a smaller part of the U.S. economy at a time when new regulations are capping fees that banks charge their retail customers. Net revenue at Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley will likely fall 3.7% in the second quarter, the fourth year-over-year decline in five quarters, according to 100 analysts compiled by Bloomberg.
