Page 8 - Jonathan Millar News Today

Strong US job growth expected in Jan; wages seen cooling

The narrative that the US central bank will press interest rates higher and hold them there for longer has been revived.

The key to avoiding a recession next year? Slowing strong wage growth, which would reduce inflation, economists say. But it wont be easy.

The Fed estimates it will raise the key interest rate to 5.1% in 2023 to curb inflation, more than it previously projected. Economists are skeptical.

In markets, the Fed is seen raising rates by a half point in December.

Despite the market rally, most economists still forecast a mild recession next year as the Fed continues to raise interest rates to curb inflation.

Powell said the goal was to be sufficiently restrictive to bring inflation back down to2%

Bosses are using cross-training and automation to reverse sagging worker productivity. Success could tame rising inflation and higher interest rates.

The Federal Reserve hiked its interest rates by 0.75 percentage point to fight inflation. The aggressive hikes risk igniting a recession.

Job vacancies unexpectedly climbed in September while the Fed has been working to slow down the labor market to cool inflation.