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A recent wave of surprisingly solid economic data reveals that the U.S. economy is in a far stronger position than most economists expected.

Friday’s stunning jobs report, coupled with a surprising jump in job openings, has forced experts to recalibrate their expectations for an economy being slowed by the Federal Reserve’s interest rate hikes.

Here’s what we learned about the U.S. economy over the past week: Companies are still eager to hire A hiring sign is displayed in a window of a store in Manhattan on December 02, 2022 in New York City. (Photo by Spencer Platt/Getty Images)

The U.S. added 517,000 jobs in January, blowing away analyst projections, while the unemployment rate dipped to 3.4 percent, the lowest in 54 years. Economists had expected unemployment to rise. 

Several sectors that had been seeing an apparent slowdown, including retail and construction, added jobs at a faster rate than last year’s monthly average. The average workweek totaled 34.7 hours, the highest since March 2022, indicating massive demand for workers. 

That means the nation clearly isn’t in a recession, despite the Federal Reserve’s efforts to weaken the labor market by hiking employers’ borrowing costs. 

“For now, it’s a good sign that the Fed hasn’t broken the economy yet. The best-case scenario is a soft landing, and it’s still in play,” Callie Cox, U.S. Investment Analyst at eToro, said in a note.

In another surprising figure, Labor Department data released Wednesday showed that the U.S. had a near-record 11 million job openings at the end of December, up from 10.4 million the month prior. Economists expected openings to fall on a month-to-month basis.

The shortfall of workers, driven in part by 2 million early retirements during the pandemic, boosts workers’ leverage over wages but also reduces the supply of certain goods and services, leading to higher prices. 

Lisa Lighter, 52, told The Hill she struggles to find workers for her small business, A Day In Our Shoes, which helps Philadelphia-area parents secure critical services for their disabled children. The labor shortage forces countless parents with a disabled child who go without those services, Lighter said.

“I work long hours myself because finding qualified help to do my administrative work is challenging. Many never even return emails, and I pay above market rate,” she said. 

Friday’s booming jobs report comes with caveats. Economists expect the jobs number to be revised down because companies added fewer holiday employees this year and the U.S. experienced an unusually warm January. The Bureau of Labor Statistics usually accounts for a rush of post-holiday layoffs and lower economic activity during a cold but uneventful month by adjusting January jobs gains higher.

“The BLS jobs report for January was VERY strong. So strong, I don’t believe it. The BLS is likely having measurement issues. Most likely, difficulty seasonally adjusting the data, which is especially important in January,” Moody’s chief economist Mark Zandi wrote on Twitter Friday.  Layoffs are lower than the headlines make it seem A sign is shown on a Google building at their campus in Mountain View, Calif., on Sept. 24, 2019. (AP Photo/Jeff Chiu, File)

Some of the nation’s largest and most well-known companies, including Google, Microsoft and FedEx, announced mass layoffs in January, fueling recession fears.  

But the data shows that most companies aren’t letting workers go. 

The number of Americans filing unemployment claims dropped to a nine-month low last week, according to Labor Department data released Thursday. That’s an indicator that the economy is still growing amid the highly publicized job reductions.

The persistent shortfall of workers means that those who are laid off can typically find employment elsewhere, and quickly. 

A survey from tech recruiting and staffing firm Andiamo found that 74 percent of tech workers who were laid off between September and November have already landed new jobs. Thirty percent of those fired workers jumped over to new industries such as finance and media. 

“Despite the large layoffs and firings in the tech sector over the past year, the data strongly implies that these workers with in-demand skills are quickly finding employment,” Joe Brusuelas, chief economist at auditing firm RSM, said in a note.  Fed rate hikes are making a serious dent on inflation A customer looks at refrigerated items at a Grocery Outlet store in Pleasanton, Calif.,. on Thursday, Sept. 15, 2022. (AP Photo/Terry Chea)

Federal Reserve Chairman Jerome Powell can finally exhale.

After six straight months of declines in both the consumer price index and personal consumption expenditures (PCE) price index — the two primary ways of tracking inflation — Fed officials are willing to acknowledge that their rate hikes are working.

“We actually see disinflation in the goods sector,” Powell said Wednesday, after the Fed issued its smallest interest rate hike since March 2021. 

“We note that when we say inflation is coming down that this is good,” he continued.

Powell’s remarks may seem like little more than a basic observation. But his willingness to acknowledge progress against inflation — however slight — is a sign that the Fed feels increasingly confident in its fight to bring down price growth.

The Fed has been reluctant to declare victory with the PCE price index still up 5 percent on the year in December, well above the Fed’s annual inflation target of 2 percent but down from a peak of 7 percent in June. Pence: ‘We’ve got to have a conversation’ about reforming Social Security What are spy balloons and what is their purpose?

Powell added that while prices for goods have fallen steadily, prices for basic services are still rising and may continue to do so as long as the labor market holds strong.

The staggering January gain of 517,000 jobs might be a cause for concern for the Fed, even though wage growth continued to slow down. While Fed officials are optimistic they can quash inflation without derailing the job market, they could face pressure to keep cranking up rates.

“If the central bank thinks that the low unemployment rate will necessarily push up wage growth and inflation moving forward, this strong report may darken the economic outlook. But if instead, Chair Powell and colleagues are heartened by tempering wage growth, then the odds that the economy can avoid a recession increase,” wrote Nick Bunker, head of economic research at Indeed Hiring Lab, in a Friday analysis.

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Sports

Stanton won’t blame ailing elbows on torpedo bats

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Stanton won't blame ailing elbows on torpedo bats

NEW YORK — Giancarlo Stanton, one of the first known adopters of the torpedo bat, declined Tuesday to say whether he believes using it last season caused the tendon ailments in both elbows that forced him to begin this season on the injured list.

Last month, Stanton alluded to “bat adjustments” he made last season as a possible reason for the epicondylitis, commonly known as tennis elbow, he’s dealing with.

“You’re not going to get the story you’re looking for,” Stanton said. “So, if that’s what you guys want, that ain’t going to happen.”

Stanton said he will continue using the torpedo bat when he returns from injury. The 35-year-old New York Yankees slugger, who has undergone multiple rounds of platelet-rich plasma injections to treat his elbows, shared during spring training that season-ending surgery on both elbows was a possibility. But he has progressed enough to recently begin hitting off a Trajekt — a pitching robot that simulates any pitcher’s windup, arm angle and arsenal. However, he still wouldn’t define his return as “close.”

He said he will first have to go on a minor league rehab assignment at an unknown date for an unknown period. It won’t start in the next week, he added.

“This is very unique,” Stanton said. “I definitely haven’t missed a full spring before. So, it just depends on my timing, really, how fast I get to feel comfortable in the box versus live pitching.”

While the craze of the torpedo bat (also known as the bowling pin bat) has swept the baseball world since it was revealed Saturday — while the Yankees were blasting nine home runs against the Milwaukee Brewers — that a few members of the Yankees were using one, the modified bat already had quietly spread throughout the majors in 2024. Both Stanton and former Yankees catcher Jose Trevino, now with the Cincinnati Reds, were among players who used the bats last season after being introduced to the concept by Aaron Leanhardt, an MIT-educated physicist and former minor league hitting coordinator for the organization.

Anthony Volpe, Jazz Chisholm Jr., Cody Bellinger, Paul Goldschmidt and Austin Wells were among the Yankees who used torpedo bats during their season-opening sweep of the Brewers.

Stanton explained he has changed bats before. He said he has usually adjusted the length. Sometimes, he opts for lighter bats at the end of the long season. In the past, when knuckleballers were more common in the majors, he’d opt for heavier lumber.

Last year, he said he simply chose his usual bat but with a different barrel after experimenting with a few models.

“I mean, it makes a lot of sense,” Stanton said. “But it’s, like, why hasn’t anyone thought of it in 100-plus years? So, it’s explained simply and then you try it and as long as it’s comfortable in your hands [it works]. We’re creatures of habit, so the bat’s got to feel kind of like a glove or an extension of your arm.”

Stanton went on to lead the majors with an average bat velocity of 81.2 mph — nearly 3 mph ahead of the competition. He had a rebound, but not spectacular, regular season in which he batted .233 with 27 home runs and a .773 OPS before clubbing seven home runs in 14 playoff games.

“It’s not like [it was] unreal all of a sudden for me,” Stanton said.

Yankees manager Aaron Boone described the torpedo bats “as the evolution of equipment” comparable to getting fitted for new golf clubs. He said the organization is not pushing players to use them and insisted the science is more complicated than just picking a bat with a different barrel.

“There’s a lot more to it than, ‘I’ll take the torpedo bat on the shelf over there — 34 [inches], 32 [ounces],'” Boone said. “Our guys are way more invested in it than that. And really personalized, really work with our players in creating this stuff. But it’s equipment evolving.”

As players around the majors order torpedo bats in droves after the Yankees’ barrage over the weekend — they clubbed a record-tying 13 homers in two games against the Brewers — Boone alluded to the notion that, though everyone is aware of the concept, not every organization can optimize its usage.

“You’re trying to just, where you can on the margins, move the needle a little bit,” Boone said. “And that’s really all you’re going to do. I don’t think this is some revelation to where we’re going to be; it’s not related to the weekend that we had, for example. Like, I don’t think it’s that. Maybe in some cases, for some players, it may help them incrementally. That’s how I view it.”

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Rangers’ Eovaldi gets season’s 1st complete game

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Rangers' Eovaldi gets season's 1st complete game

CINCINNATI — Nathan Eovaldi pitched a four-hitter for the majors’ first complete game of the season, and the Texas Rangers blanked the Cincinnati Reds 1-0 on Tuesday night.

Eovaldi struck out eight and walked none in his fifth career complete game. The right-hander threw 99 pitches, 70 for strikes.

It was Eovaldi’s first shutout since April 29, 2023, against the Yankees and just the third of his career. He became the first Ranger with multiple career shutouts with no walks in the past 30 seasons, according to ESPN Research.

“I feel like, by the fifth or sixth inning, that my pitch count was down, and I feel like we had a really good game plan going into it,” Eovaldi said in his on-field postgame interview on Victory+. “I thought [Texas catcher Kyle Higashioka] called a great game. We were on the same page throughout the entire game.”

In the first inning, Wyatt Langford homered for Texas against Carson Spiers (0-1), and that proved to be all Eovaldi needed. A day after Cincinnati collected 14 hits in a 14-3 victory in the series opener, Eovaldi (1-0) silenced the lineup.

“We needed it, these bats are still quiet,” Texas manager Bruce Bochy said of his starter’s outing. “It took a well-pitched game like that. What a game.”

The Reds put the tying run on second with two out in the ninth, but Eovaldi retired Elly De La Cruz on a grounder to first.

“He’s as good as I have seen as far as a pitcher performing under pressure,” Bochy said. “He is so good. He’s a pro out there. He wants to be out there.”

Eovaldi retired his first 12 batters, including five straight strikeouts during one stretch. Gavin Lux hit a leadoff single in the fifth for Cincinnati’s first baserunner.

“I think it was the first-pitch strikes,” Eovaldi said, when asked what made him so efficient. “But also, the off-speed pitches. I was able to get some quick outs, and I didn’t really have many deep counts. … And not walking guys helps.”

Spiers gave up three hits in six innings in his season debut. He struck out five and walked two for the Reds, who fell to 2-3.

The Rangers moved to 4-2, and Langford has been at the center of it all. He now has two home runs in six games to begin the season. In 2024, it took him until the 29th game of the season to homer for the first time. Langford hit 16 homers in 134 games last season during his rookie year.

The Associated Press contributed to this report.

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Politics

Planning reforms to ‘rewire the system’ and get Britain building – all while protecting wildlife

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Planning reforms to 'rewire the system' and get Britain building - all while protecting wildlife

Major developers will only deal with one regulator under planning reforms which ministers say will “rewire the system” to get Britain building – all while protecting the environment. 

A review by former Labour adviser Dan Corry into Britain’s sluggish system of green regulation has concluded that existing environmental regulators should remain in place, while rejecting a “bonfire of regulations”.

But Mr Corry suggested there might be circumstances in which the government look at changing the wildlife and habit rules inherited from the EU, which protect individual species.

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The government has now explicitly ruled out any such change in this parliament.

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Campaigners have questioned whether the changes go far enough and will make a major difference to the rate and scale of building in the UK.

Speaking to Sky News, Environment Secretary Steve Reed insisted that accepting nine of the recommendations from the Corry review would amount to wholesale reform.

The minister said: “We can get a win-win for economic growth and for nature. And that is why we are moving ahead with proposals such as appointing a lead regulator for major developments so that the developers don’t have to navigate the architecture of multiple regulators.

“They just work for a single regulator who manages all the others on their behalf. Simplifying the online planning portal.

“These are huge changes that will save developers billions of pounds and speed up decisions doing damage to the environment.”

Mr Reed insisted that there would be “no more bat tunnels” built, even though the Corry review suggests that more work needs to be done to look again at the relevant guidance.

It says: “Rapidly reviewing the existing catalogue of compliance guidance, including on protecting bats, will identify opportunities to remove duplication, ambiguity or inconsistency.

“Natural England has already agreed to review and update their advice to Local Planning Authorities on bats to ensure there is clear, proportionate and accessible advice available.”

The review will mean:

• Appointing one lead regulator for every major infrastructure project, like Heathrow expansion

• A review on how nature rules are implemented – but not the rules themselves

• Insisting regulators focus more on government priorities, particularly growth

Economist and former charity leader Mr Corry, who led the review, said it shows that “simply scrapping regulations isn’t the answer”.

“Instead we need modern, streamlined regulation that is easier for everyone to use. While short-term trade-offs may be needed, these reforms will ultimately deliver a win-win for both nature and economic growth in the longer run.”

However, Sam Richards from Britain Remade, a thinktank trying to get Britain growing, said that while the steps are welcome, the number of regulators that report to the environment department would remain the same before and after the review. He questioned whether this would have the impact ministers claimed.

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