Prominent Harvard Economics Professor Marty Feldstein is warning that despite stellar job growth in February, the U.S. economy could be crippled by interest rate hikes.
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“I think the U.S. economy now is in a picture perfect condition but I still think it’s very fragile,” Feldstein told FOX Business’ Maria Bartiromo on “Mornings with Maria” on Monday.
U.S. stocks rallied on Friday after U.S. employers added 313,000 jobs in February, walloping expectations. The report showed annual growth in the average hourly earnings slowed to 2.6% in the month.
Higher wage growth could encourage the Federal Reserve to raise interest rates at a faster pace this year.
Feldstein cautioned, rising interest rates create a “very fragile situation.”