An inflation gauge closely tracked by the Federal Reserve remained low last month, adding to signs of cooling price increases and raising the likelihood that the Fed will leave interest rates unchanged when it next meets in late September.
A cooling job market is likely forstalling further rate hikes this year. Feel free to have your uninformed opinion but the fed has stated that the purpose of rate hikes is to relax an inflexible labor market, which means increasing unemployment.
Fed is hiking rates to make borrowing less attractive which hurts new job growth and limits expansion.
The inflexible labor market is a result of demand for labor vastly exceeding supply, largely due to shitloads of people cashing out and retiring during COVID, and the Fed is getting that closer to parity.
I say “getting closer to parity” because we’re still adding hundreds of thousands of jobs per month on net in a market that is as favorable to labor as any in around 80 years.
Holy shit someone should tell the labor market, since it’s competitive as fuck right now.
Weird that none of this “driven unemployment” is showing up anywhere.
A cooling job market is likely forstalling further rate hikes this year. Feel free to have your uninformed opinion but the fed has stated that the purpose of rate hikes is to relax an inflexible labor market, which means increasing unemployment.
Fed is hiking rates to make borrowing less attractive which hurts new job growth and limits expansion.
The inflexible labor market is a result of demand for labor vastly exceeding supply, largely due to shitloads of people cashing out and retiring during COVID, and the Fed is getting that closer to parity.
I say “getting closer to parity” because we’re still adding hundreds of thousands of jobs per month on net in a market that is as favorable to labor as any in around 80 years.