Federal Reserve targets hot hiring market to tame inflation - Jacksonville Business Journal

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.”

United Kingdom United Kingdom Latest News, United Kingdom United Kingdom Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

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.
Source: FoxBusiness - 🏆 458. / 53 Read more »

Here's how pizza chain Domino's is tackling high inflation - Jacksonville Business JournalInflation is hitting businesses of all shapes and sizes. Here's how executives with Domino's Pizza said the chain is tackling rising costs.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

These office markets may see biggest impact from remote-work adoption - Jacksonville Business JournalThe U.S. Census Bureau released data from its 2021 American Community Survey earlier this month, including metrics that show how much work-from-home has increased since the Covid-19 pandemic.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

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.
Source: Reuters - 🏆 2. / 97 Read more »

Jacksonville construction company Sauer gets Defense contract bumped by $25 million - Jacksonville Business JournalThe task order was just issued earlier this month and has already jumped in value.
Source: JaxBizJournal - 🏆 599. / 51 Read more »

Jacksonville construction company Sauer gets Defense contract bumped by $25 million - Jacksonville Business JournalThe task order was just issued earlier this month and has already jumped in value.
Source: JaxBizJournal - 🏆 599. / 51 Read more »