Why the Fed Isn’t Worried About the Jobs Data

Why the Fed isn’t worried about the jobs data

The unemployment rate reached 4.6% today!  Nevertheless, the Federal Reserve perceives current conditions as stable, allowing for a policy stance slightly above neutral since labor market deterioration has not yet occurred. Since late 2022, I have consistently argued that the Fed shifted its approach to maintaining a more restrictive policy throughout this cycle. I have emphasized that, regardless of fluctuations in labor data, the Fed will main…

November Jobs Report Signals Labor Softening—but Leaves the Fed on Hold - Channelchek

The November jobs report offered fresh signs that the U.S. labor market is cooling, but not enough to materially alter the Federal Reserve’s near-term policy outlook. While the data points to slower hiring and a higher unemployment rate, policymakers and economists broadly agree that the figures fall short of triggering an immediate shift toward additional rate cuts. According to the latest report, the U.S. economy added 64,000 jobs in November,…