Economics Report

As of current there are many conflicting reports about the future of the economy. Some economists believe that we are due for a rate cut in order to help give the economy a boost. However, the majority of economists still feel that growth will continue well into 2007. Although, despite growth, interest rates may or may not be increased due to job growth. For the past year the pressure on the job market had been pushing up wages which as a result put upward pressure onto prices causing inflation. However, unemployment was at a fourth month high in January at 4.6%. The economy added only 111,000 jobs which is almost 39,000 below economist forecast. If the pressure on wages relents then our economy should grow at an acceptable rate while inflation stays within the 1 to 2% zone. This is of course unless we have a huge spike in oil prices which could cause more pressure on inflation and rates.