6 January 2023
If you are covering the latest employment data from the US, please find below a comment from Richard Carter, head of fixed interest research at Quilter Cheviot:
“The latest US jobs data is another reminder that the world’s largest economy remains largely intact despite what inflation did in 2022. Furthermore, following comments earlier this week that the Federal Reserve will remain in hawkish mode for the foreseeable future, this latest data print will only embolden Jerome Powell to keep on the path of higher interest rates. Clearly the US economy is showing that it can take the strain for now.
“With the jobs market continuing to be red hot and corporate earnings holding up in the face of tighter monetary policy, the fabled ‘soft landing’ may be achievable after all. Given the sluggish response by central banks around the world to inflation, this would be a remarkable feat and should just result in a slowdown in growth in the US, rather than any deep or prolonged recession. Attention now turns back to the inflation data to get a better steer on how long the Fed’s hawkish behaviour will last for.”
