Posted 1/5/2024, 9:35:14 PM
Red-Hot Jobs Report Complicates Fed's Fight Against Inflation
- December jobs report came in hotter than expected, with 216,000 jobs added vs 175,000 estimate
- Makes Fed's job more difficult in terms of slowing economy to rein in inflation
- Jobs market still very strong, creates issues for Fed as it could stay too strong for inflation
- Inflation disinflationary process ongoing but Fed targets 2% inflation sustained over time
- Markets likely ahead of Fed in terms of rate cuts; more data needed to support cuts