Posted on Mar 10, 2023
The job market slowed last month, but it's still too hot to ease inflation fears
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https://www.npr.org/2023/03/10/ [login to see] /jobs-workers-labor-market-inflation-federal-reserve
Hiring cooled last month from its sizzling pace in January, but the U.S. job market remains unusually hot, with an unemployment rate hovering near a half-century low.
Employers added 311,000 jobs in February, according to a report from the Labor Department Friday that will be closely studied by the Federal Reserve.
The unemployment rate inched up to 3.6% from 3.4% in January, as more than 400,000 people joined the workforce.
Hiring cooled last month from its sizzling pace in January, but the U.S. job market remains unusually hot, with an unemployment rate hovering near a half-century low.
Employers added 311,000 jobs in February, according to a report from the Labor Department Friday that will be closely studied by the Federal Reserve.
The unemployment rate inched up to 3.6% from 3.4% in January, as more than 400,000 people joined the workforce.
The job market slowed last month, but it's still too hot to ease inflation fears
Posted from npr.org
Jobs
Employment
Economics
Posted 1 y ago
Responses: 4
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PO1 William "Chip" Nagel good day Brother William, always informational and of the most interesting. Thanks for sharing, have a blessed day!
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PO1 William "Chip" Nagel
..."The Fed is likely to stay skittish
Fed Chair Jerome Powell told lawmakers this week that a very strong job market, along with robust consumer spending and stubbornly high inflation, could prompt the central bank to raise interest rates higher – and more rapidly – than had been expected late last year.
"The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy," Powell told the Senate Banking Committee Tuesday. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes."
In addition to the jobs report, the Fed will be guided by a report on February inflation that's due out next Tuesday. The central bank's rate-setting committee meets the following week.
Historically, when the Fed tries to curb inflation by raising interest rates, it results in higher unemployment, but past experience may not be so helpful in the current environment.
"We're in kind of a brave new world when it comes to inflation and the job market," Richardson said. "Nothing about the pandemic recovery or the economy since that time of the pandemic really reflects historical trends."
The Fed is also keeping a close eye on rising wages, which can contribute to higher prices, especially in labor-intensive service industries. On average, wages in February were 4.6% higher than a year ago.
"Strong wage growth is good for workers, but only if it's not eroded by inflation," Powell told a House committee this week."
..."The Fed is likely to stay skittish
Fed Chair Jerome Powell told lawmakers this week that a very strong job market, along with robust consumer spending and stubbornly high inflation, could prompt the central bank to raise interest rates higher – and more rapidly – than had been expected late last year.
"The process of getting inflation back down to 2% has a long way to go and is likely to be bumpy," Powell told the Senate Banking Committee Tuesday. "If the totality of the data were to indicate that faster tightening is warranted, we would be prepared to increase the pace of rate hikes."
In addition to the jobs report, the Fed will be guided by a report on February inflation that's due out next Tuesday. The central bank's rate-setting committee meets the following week.
Historically, when the Fed tries to curb inflation by raising interest rates, it results in higher unemployment, but past experience may not be so helpful in the current environment.
"We're in kind of a brave new world when it comes to inflation and the job market," Richardson said. "Nothing about the pandemic recovery or the economy since that time of the pandemic really reflects historical trends."
The Fed is also keeping a close eye on rising wages, which can contribute to higher prices, especially in labor-intensive service industries. On average, wages in February were 4.6% higher than a year ago.
"Strong wage growth is good for workers, but only if it's not eroded by inflation," Powell told a House committee this week."
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SFC John D.
This one?
Supply/Demand on Money supply: An increase in the money supply will tend to cause inflation. With more cash in their pockets and bank accounts, consumers often find new reasons to buy things, but unless the supply of goods and services has increased in the meantime, the consumers’ mounting demand for products will simply bid up prices, thus stoking inflation. Economists sometimes say that inflation rises when ‘too much money is chasing too few goods.’ This is sometimes referred to as “demand-pull inflation.”
I thought Supply/Demand was a proven factor in inflation, not "nonsense".
Supply/Demand on Money supply: An increase in the money supply will tend to cause inflation. With more cash in their pockets and bank accounts, consumers often find new reasons to buy things, but unless the supply of goods and services has increased in the meantime, the consumers’ mounting demand for products will simply bid up prices, thus stoking inflation. Economists sometimes say that inflation rises when ‘too much money is chasing too few goods.’ This is sometimes referred to as “demand-pull inflation.”
I thought Supply/Demand was a proven factor in inflation, not "nonsense".
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SFC John D.
This one?
Supply/Demand on Money supply: An increase in the money supply will tend to cause inflation. With more cash in their pockets and bank accounts, consumers often find new reasons to buy things, but unless the supply of goods and services has increased in the meantime, the consumers’ mounting demand for products will simply bid up prices, thus stoking inflation. Economists sometimes say that inflation rises when ‘too much money is chasing too few goods.’ This is sometimes referred to as “demand-pull inflation.”
I thought Supply/Demand was a proven factor in inflation, not "nonsense".
Supply/Demand on Money supply: An increase in the money supply will tend to cause inflation. With more cash in their pockets and bank accounts, consumers often find new reasons to buy things, but unless the supply of goods and services has increased in the meantime, the consumers’ mounting demand for products will simply bid up prices, thus stoking inflation. Economists sometimes say that inflation rises when ‘too much money is chasing too few goods.’ This is sometimes referred to as “demand-pull inflation.”
I thought Supply/Demand was a proven factor in inflation, not "nonsense".
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MSG Stan Hutchison
SFC John D. - No, this one:
Lt ColLt Col Charlie Brown
Posted 2 h ago
Inflation is due to printing spending money you can't back/don't actually have
I am certainly not an economist, but I do not believe the problem is that simple. there was the massive supply interruption cause by COVID, there was what I consider price gouging by the oil companies, then there was the invasion of Ukraine. I am sure there are other contributing causes.
Hell even the experienced economist cannot agree on the cause or the resolution.
Lt ColLt Col Charlie Brown
Posted 2 h ago
Inflation is due to printing spending money you can't back/don't actually have
I am certainly not an economist, but I do not believe the problem is that simple. there was the massive supply interruption cause by COVID, there was what I consider price gouging by the oil companies, then there was the invasion of Ukraine. I am sure there are other contributing causes.
Hell even the experienced economist cannot agree on the cause or the resolution.
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