London, United Kingdom (PressExposure) March 06, 2010 -- Sources close to analysts at "Zen International" say that recent data showing another unexpected jump in weekly jobless claims proves that the recovery in the US is far more fragile than over-bullish commentators are willing to acknowledge.
Expectations among economists had been for another 430,000 initial claims but the figure came in significantly higher at 473,000.
"Zen International" analysts also cited the Producer Prices Index which increased by 1.4% in January which shows that inflation is gaining a foothold in the world's biggest economy despite claims that deflation was and remains the chief threat to the recovery.
The firm is convinced that the rising price of oil and imported goods is likely to present the greatest challenge to policymakers as 2010 progresses and the situation is unlikely to helped by jitters over the credentials of the US dollar as a store of value.
"Zen International" believes that the US Federal Reserve, chaired by Ben Bernanke, is likely to find the mixed economic data making its decision on whether or not to begin tightening monetary policy more difficult. Unemployment is generally seen as the chief barrier to raising interest rates or withdrawing other stimulus from the economy and "Zen International" suggests that the Fed is likely to come down on the side of caution.