(Bloomberg, New York) Officials at the Federal Reserve emphasized that despite signs showing that the inflation pressure is soothing, the Fed must continue to raise interest rates to curb inflation.
Atlanta Federal Reserve Governor Bosdick said on Friday (January 6) that the inflation rate is still too high, and he reiterated that it has increased interest rates from less than 4.5%to more than 5%.
He said in an interview with American Consumer News and Business Channel (CNBC) that he held an open attitude towards interest rate hikes 25 or 50 basis points.
Balkin, the president of the Federal Reserve Bank of Richng, also said that "there are many jobs to do" to make the inflation rate return to the Fed's 2%goal.
The Federal Reserve Director Cook pointed out that although the prices of prices have been relieved, the inflation rate is still too high for the Federal Reserve.
After the Federal Reserve raised 75 basis points in four consecutive interest rates last year, it reduced the interest rate hike to 50 basis points last month, and said that it would continue to raise interest rates in 2023.At present, the benchmark interest rate is 4.3%, and the average predictive interest rate of US officials will continue to increase to a maximum of 5.1%.
The data released by the United States on Friday shows that the US labor market remained strong last month, and wage growth slowed down, reducing the risk of recent decline in the US economy, and also providing room for the Fed to slow down interest rate hikes.
According to a report from the US Department of Labor, in December last December, there were 223,000 new employment employment in the non -agricultural sector, which was higher than the market expectations of 200,000, and the annual employment growth almost reached the highest year.The new employment mainly comes from medical care, social assistance, leisure and hotels, buildings and other industries.
The unemployment rate decreased by 0.1 percentage points to 3.5%in December.The average hourly salary of employees increased by 0.3%year -on -year and 4.6%month -on -month, not only lower than expected, but also slowed down.This is a good news for the Federal Reserve, because the Fed's pressure on wages, especially the wages of the service industry, are deemed to be the main resistance to inflation.
Former Federal Reserve Director Crotzi said in an interview that the Fed "not to reduce employment opportunities, but to slow salary growth, because they are more worried about the persistence of inflation."
He believes that the Fed will definitely continue to raise interest rates at the end of this month and March, but the soothing salary pressure means that the possibility of 25 basis points in these two meetings will be greater than 50 basis points in interest rate hikes.
Although there are still many vacancies in the United States, there are more weak links in the labor market, especially in the technology industry and real estate industry.E -commerce giant Amazon recently announced that it will lay off more than 18,000 people; the real estate intermediary company Compass Inc announces another round of layoff plans.
The US Department of Labor also shows that non -durable product manufacturing, temporary employment service industry, and information industry have made layoffs last month.
