The markets recoiled as a much stronger than expected January Employment Report put stock and bond markets on notice that the Federal Reserve is not yet about to quietly move to the sidelines with an overheating labor market still very much in place. Bottom-line, Fed monetary tightening will continue in the months ahead.
The dominant narrative on Wall Street has been that Fed’s monetary tightening is nearly out of the picture for 2023.
To learn more, check out this week's U.S. Outlook Report.
Contributors
[Contributors Section]
Fed’s Aggressive Interest Rate Hikes Begin Bearing Fruit
The Federal Reserve’s quest to slow the U.S. economy and lower inflation is gaining some traction.
Weak Economic Data Heightens U.S. Recession Risks
While the Fed seems to be gaining the upper hand on the
inflation battle – the latest evidence being a 0.5% monthon-month decrease in producer prices in December– the
casualty increasingly appears to be slowing U.S. economic
growth based on weaker than expected December retail
sales and manufacturing production data released earlier
this week.