That is more than double the 2.1% recorded in the second quarter and a testament to the strength of consumers.
But he warned that stronger than expected economic data, particularly as regards the labor market, could leave the door open to even more pressure to raise rates or keep them higher for longer.
"Additional evidence of persistently above-trend growth, or that tightness in the labor market is no longer easing, could put further progress on inflation at risk and could warrant further tightening of monetary policy."
Complicating matters is that the post-pandemic economy has not gone according to script where higher interest rates almost always blunt economic activity and cause a marked slowdown in the labor market.
“The labor market is still adjusting, if it ever does, there’s a question whether retail will ever recover completely,” he says.
Persons:
” Sam Bullard, Wells, Jerome Powell, Powell, ”, George Calhoun, Calhoun, Bill Adams, –, speakership
Organizations:
Federal, Economic, of New, Stevens Institute of Technology, University of, Comerica, “
Locations:
U.S, of New York, Washington, Israel