Continued strong hiring and consumer spending are complicating Federal Reserve Chair Jerome Powell’s campaign to tame inflation.
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“Employers added 517,000 jobs in January, a big figure that shocked economists who were anticipating a slowdown, and pushed the unemployment rate down to 3.4%, a 53-year low. Revisions to earlier reports also pointed to less weakness than initially thought.
The Labor Department’s report on February hiring, due for release Friday, will offer clues as to whether January’s was a one-off blip or a sign of an economy that’s accelerating. A separate report Wednesday could show whether workers continue to quit their jobs at historically high rates, which can indicate greater confidence in their ability to find new jobs with better pay.”
Long-term Treasury yields have since ticked up as investors become more concerned about inflation and stopped believing the Fed would cut rates anytime soon. A big question is whether the run-up in yields will be enough to shift the economy into the slower gear the Fed seeks.
“The Fed needs to get long-term yields high enough to slow the economy,” said Mr. Berezin. “There won’t be a recession until more people are convinced that there won’t be a recession.”
Write to Nick Timiraos at
Nick.Timiraos@wsj.com
I be readin these like
when its chaos the Feds are trippin when its reboundin they want chaos & bail outs for corporations . Yet refuse to help Americans, this country