July 1st, 2024
The National Desk recently published an article featuring Mark Williams, Master Lecturer of Finance, discussing how economists and the Federal Reserve are awaiting the release of a new jobs report to gauge the labor market’s strength.
The labor market is returning to normal after the pandemic surge, stabilizing with slower wage growth and fewer job openings. Unemployment in May was 4%, considered “full employment” by economists, despite slower job growth. The Federal Reserve is focused on achieving maximum employment and stable prices, closely monitoring the labor market amid inflation concerns.
“Now that inflation looks like it’s being tamed, I think the focus is going to be more on ‘what can we do to continue to grow the economy’,” Williams adds.
Despite significant rate hikes to combat inflation, the Federal Reserve has avoided a recession and continues to focus on achieving a soft landing for the economy.
