![]() ![]() "This kind of strength in the labor market makes it more difficult for the Fed to continue its reduction in inflation." "Interest rates are going to have to remain elevated," said Sean Snaith, director of the University of Central Florida's Institute for Economic Forecasting. It suggested there was no impact yet on the economy from tighter credit conditions, which together with the Fed's punitive rate hikes have raised the risk of a recession. Though data for February and March were revised sharply lower, the labor market is slowing only marginally. ![]() The Labor Department's closely watched employment report on Friday also showed the unemployment rate falling back to a 53-year low of 3.4%. job growth accelerated in April while wage gains increased solidly, pointing to persistent labor market strength that could compel the Federal Reserve to keep interest rates higher for longer as it fights to bring inflation under control. ![]()
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