The Federal Reserve is worried a tight labor market might fuel high inflation, but it is also betting on the strong demand for labor to keep the economy out of recession.
A bevy of top Fed officials, including Chairman Jerome Powell, say businesses are leery of cutting jobs. Many companies have struggled to hire people in the past few years due to the worst labor shortage in decades. The critical role of consumer spending underpins the Fed’s forecast that the economy will continue to expand in 2023 and avert a downturn. The central bank estimates the U.S. will grow 0.5% next year.“The expected increase in the unemployment rate between this year and next has never happened without the economy falling into a recession,” noted chief economist Ryan Sweet of Oxford Economics.
The flip side of a vibrant labor market, however, is upward pressure on wages as companies compete to hire and retain employees. If workers think inflation will stay high, Fed officials reason, it could cause them to demand ever-rising wages and trigger an inflationary debacle known as a wage-price spiral.
Well, the FED keeps saying unemployment is going to have to go up to slow the economy. I bet Powell is happy.
BS. It doesn't include the millions who gave up or were kicked off unemployment.
Did you know that until the mid-1970s, the NRA backed federal legislation to limit concealed weapons; prevent possession by criminals, the mentally ill and children; to require all dealers to be licensed; and to require background checks?
We’re already in a recession.
Lmfao
Bets. Sums them up!