In the early hours of November 8th Beijing time, the Federal Reserve indicated that it would lower the target range for the federal funds rate by 25 basis points to 4.5%-4.75%, in line with market expectations.
Powell stated that although inflation is slightly higher than expected, he is not concerned about the economy. Overall, the Federal Reserve feels good about economic activity. At the same time, the inflation reports they have received indicate that (inflation) is not bad, but slightly higher than expected. By December, the Federal Reserve will have more data to make decisions.
"The labor market is not a source of significant inflationary pressure," Powell stated, noting that the job market is not a key driver of inflation. In recent months, wage growth has slowed, and the unemployment rate has risen compared to a year ago. Overall, the labor market is considered not as tight as before the pandemic, but still solid.
Data released by the U.S. Bureau of Labor Statistics shows that non-farm payrolls in the U.S. plummeted to 12,000 in October, far below expectations. The U.S. CPI in September rose 2.4% year-on-year, exceeding the market expectation of 2.3%; the core CPI year-on-year growth rebounded from 3.2% in August to 3.3%. (The Paper reporter Lin Qianbing)
Search
