COLLEGE PARK, Md., Oct. 6 (UPI) -- Friday's U.S. Labor Department report that job creation last month was weak is leading some economists to see a silver lining in the data.
"In the months ahead, loosening labor market conditions will put a lid on wages and help contain inflation," said Peter Morici, economist at the University of Maryland.
"Along with lower gasoline and natural gas prices, modest wage pressures will keep prices in check and the Federal Reserve will have no cause to raise interest rates. With fourth quarter growth benefiting from lower energy prices, the Federal Reserve is not likely to lower interests until 2007."
Morici also said modest growth, constrained wages, steady interest rates and falling energy prices as good for corporate profits and stock prices.
"The stock market rally should continue, and recent (large capitalization) stock gains should spread into the broader market," Morici said.
