Federal Reserve Chair Jerome Powell is warning of pain in the job market in the war against high inflation. A growing coalition of progressives has its own message to the Fed: Stop punishing workers.
Jerome Powell takes a coffee break with attendees of the central bank's annual symposium at Jackson Lake Lodge in Grand Teton National Park on Aug. 26, 2022, in Moran, Wyo. | Amber Baesler/AP PhotoFederal Reserve Chair Jerome Powell is warning of pain in the job market in the war against high inflation.
But Powell — who will address the labor market situation at a Brookings Institution event on Nov. 30 — is now battling persistent and raging inflation, a post-pandemic trend that the Fed didn’t see coming. That has prompted policymakers to return to their traditional focus on fighting inflation by cranking up borrowing costs even if it leads to a surge in joblessness and triggers a recession.
Senior central bank policymakers say they’re open to signs that inflation can cool without much of a hit to employment; for example, a key measure of employer compensation costs, given particular weight by the Fed, shows that private sector wages are decelerating. But they’re not convinced yet. Powellin early November that he still thinks the labor market is “out of balance.”
For their part, Fed officials in September said they expect their rate moves to drive unemployment to 4.4 percent by next year — which could translate to more than a million job losses. But they’re not targeting a certain level of employment. “We have seen increasing examples of companies talking about the fact that either they are seeing their input costs coming down, or they see a future in which their input costs come down,” she said, citing corporate earnings calls with shareholders. “And then pivoting to saying, ‘this is really good news, because we’re going to keep the same pricing,’ or in some cases, saying, ‘we’re going to be doing more pricing increases.
Malaysia Latest News, Malaysia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Powell St BART station closed due to major medical emergencyAn individual was rescued from the trackway at the Powell St BART station this morning
Read more »
Major medical emergency closes Powell Street BART station; Muni providing supportBART officials on Saturday morning confirm a major medical emergency has shut down the Powell Street station.
Read more »
BART Powell Street Station Reopens After Medical EmergencyBART Saturday morning reported a station closure at Powell Street in San Francisco due to a major medical emergency.
Read more »
Feds: Arizona border containers 'unlawful'For Star subscribers: Gov. Doug Ducey's installation of shipping containers on federal land along the border is 'flawed on so many fronts,' new legal papers say.
Read more »
EUR/USD retreats towards 1.0350 amid risk aversion ahead of EU inflation, Fed’s PowellEUR/USD remains pressured around 1.0380, after beginning the week’s trading with a downside gap, as the risk-off mood underpins the US Dollar’s demand
Read more »
Economy Week Ahead: U.S. Job Market and Consumer Spending in FocusFed Chairman Jerome Powell will give remarks on the outlook of the U.S. economy and the labor market at a Brookings Institution event.
Read more »