US hiring may have slowed to a stillsolid pace in October
- By contrast, consumers — the primary driver of the economy — only modestly increased their spending beyond the rate of inflation.With inflation still painfully high and the Fed making borrowing increasingly expensive for consumers and businesses, most economists expect a recession by early next year.
- Those pay raises, in turn, can keep inflation high if companies pass on at least part of their higher labor costs to their customers in the form of higher prices.Powell spoke after the Fed announced a fourth straight three-quarter-point increase in its benchmark rate.
- The unemployment rate rose to 3.7% from a five-decade low of 3.5%.A strong job market is deepening the challenges the Federal Reserve faces as it raises interest rates at the fastest pace since the 1980s to try to bring inflation down from near a 40-hear high.
- Republican candidates across the country have attacked Democrats over inflation in their drive to regain control of Congress.All the jobs that employers have added since the recession ended have boosted the ability of consumers to keep spending, even amid high inflation.
- So far this year, the Fed has raised its key short-term rate six times — from near zero in early March to a range of 3.75% to 4%, the highest level in 14 years.Housing has, so far, absorbed the worst damage from higher borrowing costs.
- That was the fastest such pace in 40 years, though it still trailed inflation.Wages tend to follow inflation higher as workers seek to keep up with price increases.
WASHINGTON (AP) The U.S. jobs report for October will be closely watched Friday for any indication that employers are slowing their hiring a prospect the Federal Reserve would likely welcome as a sig [+4928 chars]