Does the Jobs Report Mean Another Interest Rate Hike? How Will That Impact the Economy? Today’s long-awaited jobs report has even more than the usual significance for such a report. By indicating that the labor market remains strong, it paves the way for another 75 basis-point interest rate hike at the Federal Reserve’s policy meeting later this month. At the same time, as the midterm election campaign gets into full swing, it bolsters President Biden’s claim that the country is not in the midst of an economic recession even though the economy contracted in the first two quarters of the year.
Breaking Down What the Jobs Report Means
Last week, in his hawkish Jackson Hole speech, Fed Chair Jerome Powell underlined that the Fed’s main policy objective was to reduce inflation. He also insisted that the Fed would stay the course of raising interest rates until the job of bringing down inflation to the Fed’s 2 percent…
