Bumper employment across developed economies including the US, Australia and the UK has intensified the fight among central banks to curtail swiftly rising consumer prices, leading investors to worry about longer, larger interest rate rises., more than twice the number economists had predicted, as the roaring levels of employment that have marked the pandemic recovery remain.
The jobs data has reinforced expectations of a 0.75 percentage point rate rise at the Fed’s next meeting in September, according to Seema Shah, chief global strategist for fund manager Principal Global Investors. The New York investment bank expects the Fed to hike rates 0.5 percentage points in September, then a further 0.25 percentage points in each of the following meetings in November and December.
Since covid, most of countries banned cheap china import without alternative. It helps to create a job in most developed countries but it come at 2 to 3x cost. Consumers will have to pay extra for the home made product.
Increasing interest rate won't help. World needs to stop unnecessarily conflict/war and remove restriction on foreign labors and supply chain.