In December, the U.S. saw a notable uptick in inflation, with the Personal Consumption Expenditures (PCE) index, the Federal Reserve's preferred measure, rising to 2.6% from 2.4% a year earlier. This increase was in line with economic forecasts. On a monthly basis, the PCE index climbed by 0.3%, matching expectations.
Simultaneously, U.S. labor costs increased by 0.9% in the fourth quarter of 2024, aligning with economists' predictions.
Federal Reserve Governor Michelle Bowman highlighted "upward risks" to inflation, noting that progress in reducing inflation has significantly slowed compared to the previous year. She advocates for a cautious and gradual approach in monetary policy adjustments.
A bunch of federal workers are about to hit the labor market. It'll be interesting to see what that does to wages.
It's possible that the private sector will outgrow it
You are predicting half will take early severance?
No, but even if it's 10%, that's hundreds of thousands of people looking for new jobs.
Did you change your nym?
I was thinking l recognized this persons style of writing!
Upward risk?
Where was this assessment when inflation was sky high?
Yep. I harmonized it with my nostr.
Well, they need to inflate the debt. So.....
She is saying she wants to keep inflation at a higher level and not move it down too quickly, right?
That’s the wrong interpretation. She is arguing for quantitative tightening
Yep
The Fed has been wrong about inflation since 2020. They have been reactive and late. I predict they will be wrong again.