The Federal Reserve’s interest rate hikes to tame high inflation are increasingly looking to change one particular sector of the economy — the roaring job market.stated that while the economy has slowed from its 2021 pandemic highs and higher interest rates have weakened the housing market and slowed business investment, the labor market has continued to stay strong.
Powell noted employment has risen by an average of 378,000 jobs per month over the past three months. While the labor force participation rate showed what Powell called a “welcome uptick” in August, it has remained largely unchanged since the beginning of 2022. Powell said the Fed's projections show supply and demand in the labor market to “come into better balance” over time, easing the pressure on wages and prices. That translates into unemployment rising from 3.7% to 4.4% by the end of 2023. That means 1.5 million more Americans out of work.
“While he mentioned that unemployment may not go as high as in previous inflation-reduction cycles, the goal is still to bring down the number of job openings,” Garner said. “With a weaker labor market, demand will be pushed downward across the board, so the rate hike makes sense in the fight against stubbornly high inflation.”
Vi har sammanfattat den här nyheten så att du kan läsa den snabbt. Om du är intresserad av nyheterna kan du läsa hela texten här. Läs mer:
Sverige Senaste nytt, Sverige Rubriker
Similar News:Du kan också läsa nyheter som liknar den här som vi har samlat in från andra nyhetskällor.
Federal Reserve targets hot hiring market to tame inflation - Jacksonville Business JournalThe Federal Reserve is hoping to bring the hot job market 'into better balance.' What will that mean for businesses?
Källa: JaxBizJournal - 🏆 599. / 51 Läs mer »
Federal Reserve targets hot hiring market to tame inflation - Phoenix Business JournalThe intense labor market has been a major driver of inflation over the past year. But what will the Fed's bid to soften the job market mean for businesses?
Källa: phxbizjournal - 🏆 254. / 63 Läs mer »
Bond market crash foreshadows new lows for US stock market, BofA warnsThe bond market is crashing as the Federal Reserve hikes interest rates to combat inflation, a warning sign for the U.S. stock market, according to Bank of America.
Källa: FoxBusiness - 🏆 458. / 53 Läs mer »
Meow Wolf hires former Disney, Universal project lead Eric Piner - Dallas Business JournalWith 34 years of design and construction management experience, Meow Wolf's new VP spent a good chunk of his career working for Walt Disney World and Universal on its theme parks.
Källa: DallasBizNews - 🏆 525. / 51 Läs mer »
Fed officials stare down market volatility, say inflation remains paramount focusU.S. Federal Reserve officials on Monday sloughed off rising volatility in global markets, from slumping U.S. stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation.
Källa: Reuters - 🏆 2. / 97 Läs mer »
After SEC suit, U.S. Attorney announces indictment of Dallas developer Tim Barton - Dallas Business JournalFollowing a U.S. Securities and Exchange complaint filed on Friday, a real estate developer has been federally indicted on nine counts including securities fraud, wire fraud and conspiracy to commit wire fraud.
Källa: DallasBizNews - 🏆 525. / 51 Läs mer »