The Job Market Slowed Last Month, But It's Still Too Hot To Ease Inflation Fears

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U.S. employers added 311,000 jobs in February, only a modest slowdown from the previous month, indicating the labor market remains hot.

this week that a very strong job market, along with robust consumer spending and stubbornly high inflation, could prompt the central bank to raise interest rates higher – and more rapidly – than had been expected late last year."The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy," Powell told the Senate Banking Committee Tuesday.

Historically, when the Fed tries to curb inflation by raising interest rates, it results in higher unemployment, but past experience may not be so helpful in the current environment.

 

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