http://www.nytimes.com/2008/06/07/business/07econ.html?_r=3&hp&oref=slogin&oref=slogin&oref=slogin

“The unemployment rate surged to 5.5 percent in May from 5 percent – the sharpest monthly spike in 22 years – as the economy lost 49,000 jobs, registering a fifth consecutive month of decline, the Labor Department reported Friday.”

“The weak jobs report, coupled with a staggering rise in the price of oil — up a record $10.75 a barrel to more than $138 – unleashed a feverish sell-off on Wall Street, sending the Dow Jones industrial average down nearly 400 points. The dollar plunged against several major currencies.”

“For tens of millions of Americans struggling to pay bills, the jobs report added an official stamp of authority to a dispiriting reality they already know: A deteriorating labor market is eliminating paychecks just as they are needed to compensate for the soaring cost of food and fuel, and as the fall in house prices hacks away at household wealth and access to credit.”

“The spike in joblessness significantly cooled talk that the Federal Reserve could stop worrying about recession and might soon begin to raise interest rates to choke off rising prices for crucial goods like gasoline and food.”

“Since last fall, as fears of recession have grown along with the financial turmoil resulting from falling home prices, the Fed has cut interest rates to encourage investment and spur economic activity. A chorus of economists has warned that the Fed has unleashed too much easy money, feeding inflation and driving down the dollar. Some have suggested the Fed might have to reverse course and raise rates. Not anymore, as the labor market continues to offer up evidence of enduring trouble.”