Unemployment Data in Focus This Week
Federal Reserve Bank of Atlanta President Raphael Bostic sees inflation becoming entrench as a big danger.
“If workers think they need to gird their finances against ongoing inflation, then they negotiate for ever-higher pay. In turn, firms will continue to raise prices to offset rising labor costs, which typically represent the biggest single expense for companies. This could trigger a self-perpetuating "wage-price spiral" like we saw during the Great Inflation of the 1970s and '80s,” he wrote in an essay Tuesday.
If inflation begets inflation, it can snowball out of control. Wages can be one of the stickiest components of inflation, workers rarely will accept cuts in their salary. Right now, there are more open positions than workers to fill them.
Until the labor market begins to cool, the Fed will have to remain vigilant in its monetary stance.
There are several upcoming reports that will offer clues on the state of the labor market.
Wednesday the June ADP Nonfarm Employment Change (8:15 a.m. ET) will be released. Thursday we will get more timely data with the release of Initial Jobless Claims (8:30 a.m. ET) for the past week. Friday's Non-farm Payrolls and Unemployment (8:30 a.m. ET) data for the month of August will perhaps be the most important to traders.
These data could be just as important in determining the path of the Fed (and likely the markets) as the inflation data that comes out later in September.
The views and opinions of Mooney Navigator are those of the author who is not an associated person of Moomoo Financial Inc. The view and opinions of the author do not reflect the views of Moomoo Financial Inc. or any of its affiliates. The views and opinions of the author are provided for informational purposes only, do not constitute a recommendation of an investment strategy or to buy, sell, or hold any investment in any form, and are not research reports and should not be used to serve as the basis for any investment decision. All investments involve risk including the loss of principal and past performance does not guarantee future results.
The views and opinions of Mooney Navigator are those of the author who is not an associated person of Moomoo Financial Inc. The view and opinions of the author do not reflect the views of Moomoo Financial Inc. or any of its affiliates. The views and opinions of the author are provided for informational purposes only, do not constitute a recommendation of an investment strategy or to buy, sell, or hold any investment in any form, and are not research reports and should not be used to serve as the basis for any investment decision. All investments involve risk including the loss of principal and past performance does not guarantee future results.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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TEST : Thx for the insight. The economy will not get into a recession until the unemployment data get worse.
Kevin Lehmann : some bosses will not give raises rotate crew in out and guard their own interest
slavery of a sort
Kevin Lehmann : I my area of work hired per major job than let go once slow loosing benifits
So I ask above scale wage about 100 jobs. in 46 years
Kevin Lehmann : I opened 4 stock accts.