Ahead of Fed's September meeting, some key data on unemployment and inflation
Federal Reserve Chair
But this leaves some big open economic questions on the table. If we are in for some economic pain, how long is it going to last? How long will the fight against inflation last? And will the Fed hike interest rates again at its meeting next month?
No one has a crystal ball when it comes to the
"I do think that the jobs numbers will remain pretty strong," said Ben Ayers,senior economist at Nationwide. "I think we'll continue to see that the labor market remains quite tight.
The continuing shortage of workers could keep feeding inflation, so that would point to more interest rate hikes, which the Fed uses to cool off the economy and put the brakes on inflation. But it does seem like the cost of living is continuing to come down. Gas prices, for instance, have come down.
We'll get a look at the latest inflation numbers in a couple of weeks. And
But prices in other parts of the economy, for things like rent, are still stubbornly high.
Jones expects the Fed to keep hiking interest rates at its September meeting, and to take a hard stance on fighting inflation through the end of the year.
"I think that the determination is there to prove themselves," Jones said. "I know their credibility is on the line."
And in his speech on Friday, Powell made it clear that data from just, say, a month "falls far short" of what the Fed needs to see before it's confident inflation is under control.
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