For now, Fed officials think the ongoing slowdown in hiring and a recent tick up in joblessness suggest the labor market is returning to normal after a few years of booming hiring.
But while that approach is cautious when it comes to price increases, it could prove to be risky when it comes to the labor market.
But that chain reaction can come at a serious cost to the job market.
For now, Fed officials think that the ongoing slowdown in hiring and a recent tick up in joblessness signal that labor market conditions are returning to normal after a few years of booming hiring.
Fed rate moves take time to work, so if the central bank only starts to cut borrowing costs when the job market is showing serious signs of strain, it could be moving too late.
Persons:
” Jerome H, Powell, Mr, Neil Dutta, ” Mr, “, ”
Organizations:
Federal Reserve, Macro
Locations:
joblessness, “