Reported 6 months ago
The unexpectedly strong addition of 272,000 new jobs in May has reignited a debate among Federal Reserve officials regarding the potential restrictiveness of their current policy setting, especially in light of the uptick in average hourly earnings. While the robust employment figures may not alter expectations for the Fed to maintain high interest rates in the upcoming meeting, it has sparked discussions on whether policy rates are as restrictive as previously assumed. This has led to a reevaluation of the neutral rate concept and the necessity of potential rate increases to combat inflation in the future.
Source: YAHOO