U.S. inflation easing, job market similar to pre-pandemic conditions, Fed report says

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The congressional report documented the steady emergence of more normal economic conditions in the aftermath of the COVID-19 pandemic

Inflation is easing and the job market has returned to the “tight but not overheated” situation seen before the COVID-19 pandemic threw the U.S. economy into disarray, the Federal Reserve said on Friday in a congressional report that documented the steady emergence of more normal conditions in the aftermath of the health crisis.

The job market, meanwhile, “continued to rebalance over the first half of this year,” the report noted. “Labor demand has eased, as job openings have declined in many sectors of the economy, and labor supply has continued to increase, supported by a strong pace of immigration.” The twice-yearly report to Congress comes ahead of two days of testimony by Fed Chair Jerome Powell, set for Tuesday and Wednesday next week, that is likely to focus on the Fed’s plans for monetary policy heading into a sensitive election season.

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