MCCAIGThe latest employment report points toward further interest rate hikes by the Federal Reserve. Although there is no one-to-one connection between employment and Fed policy, Jerome Powell has emphasized that future decisions will be driven by new data. The inflation that the Fed is fighting results from too much stimulus relative to the country's productive capacity. Employment would have to drop markedly for the Fed to end its tightening program-and even then they wouldn't cut interest rates for quite some time. The latest employment report is quite far from the weakness that the Fed needs to see to hit the "pause" button on their fight against inflation.

Source: Forbes April 08, 2023 23:52 UTC