US economists are keeping a close eye on March inflation despite declining jobs

The Federal Reserve is moving forward raise interest rates in early March, economists say, because rising wages and job losses are on the rise in the US labor market.

Statistics released Friday showed a significant decrease in the number of new jobs in December. Only 199,000 posts were created, less than half of the expected auditors and less than 537,000 per month in 2021.

But some economists are still pulling their bet on rising interest rates, simply looking at rising wages and lower unemployment, which fell to 3.9 percent in December – close to the previous 3.5 percent epidemic. Mid-hour interest rate rose 0.6 percent from last month, meaning an annual profit of 4.7 percent.

JPMorgan Chase economists on Friday wrote a pencil in the first March price contrary to what was predicted to depart in June.

Stephen Juneau, a US economist at Bank of America, states: “Although [the headline] the amount of pay decreased, if you look closely, there are reasons to be optimistic. ”

He added: “All the indications are showing a very difficult labor market. It is all in line with the idea that the Fed will move forward with the March rise.”

Economists at Barclays said Friday’s sentiment boosted confidence that the Fed would raise prices in March, adding that the central bank could make an emergency announcement. termination of its bond-buying program at its meeting this month.

Andrew Patterson, Vanguard’s global economy chief, said his group was discussing whether to continue to predict that interest rates would rise until March. “The benefits of wages and rising prices are hard to imagine,” he said of Fed policymakers.

Expectations for the immediate immersion of a financial plan are lowered by a changes in Fed interest, who moved to reducing rising inflation rather than the nursing market the labor market returns to its pre-epidemic health.

Proponents of her case have been working to make the actual transcript of this statement available online. It currently stands at 61.9 percent and there are still fewer than 3.6m people at work compared to when the virus first spread.

A year ago, Fed chairman Jay Powell was warning that rising unemployment rates were reducing the labor market weakness and instead encouraged investors to consider participating in the labor market.

“The unemployment risks published during the Covid period have significantly reduced job market volatility,” Powell said in a statement last February.

But he has also changed his approach, acknowledging that the risk of inflation means the Fed must tighten its grip even though the number of people returning to work was not as high as the central bank would have expected.

“The truth is, we do not have the capacity to participate and we may not have it for a while,” Powell said following a December meeting. “Immediately, we need to make a plan now. And inflation is above what you want.”

Economists say the Fed wants to look at how the population is working weakly, not only because inflation is now rampant in almost 40 years but also because of. these metrics as unemployment and wage growth point to one of the hottest labor markets in history.

Two central bank executives, Christopher Waller and James Bullard, have already supported the March move.

“The Fed has no business to be 0 percent [rates] and purchase. . . bond, “says Jurrien Timmer, chief executive officer at Fidelity Investments.” This was a process two years ago and probably a year ago. It is not appropriate right now and the Fed will be the first to accept this. “

Steven Blitz, US chief financial officer at TS Lombard, said: “There is no indication that the Fed will continue to exercise restraint. We are working hard enough so there is no need to cut costs right now.”