Recent Federal Reserve confidence in the labor market contrasts sharply with concerns from six months ago about slowing job growth and a rising unemployment rate. Following a significant interest rate reduction aimed at stabilizing the economy, Fed officials are now optimistic, believing the job market is stable. The latest employment report showed that January's hiring slowed but with higher revisions for prior months while unemployment remains low at 4%. This gives policymakers room to wait for clearer inflation easing signs before altering borrowing costs further.
No major cracks had emerged, but monthly jobs growth had slowed and the unemployment rate was steadily ticking higher.
Officials now exude a rare confidence that the labor market is strong and set to stay that way.
Across a number of metrics, the labor market looks remarkably stable even as it has cooled.
People can get jobs and employers can find workers, said Mary C. Daly, president of the San Francisco Fed.
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