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A surge in small business hiring could run counter to the Federal Reserve’s efforts to curb inflation. wall street journal report.
Small businesses have been responsible for all of the job growth in the US since the outbreak of the pandemic, accounting for nearly four out of five job openings. wall street journal Labor data review and analysis by Jeffries.
Investors are closely following the surge in small business employment as it could have a significant impact on financial markets. Small businesses accounted for 78% of US job listings in November, the most recent month for which data is available.
According to Wall Street’s potentially confusing logic, good news for the economy, such as a surge in hiring by small businesses, can be bad news for markets. As long as the job market remains strong, the Fed will struggle to keep the economy slowing and inflation under control, and will continue to raise rates.
Federal Reserve Chairman Jerome Powell contrasted the 10.5 million available job openings with data showing the U.S. left 6 million unemployed that month, citing inflation as unacceptable. He cited it as an example of “economic turmoil” that has remained at a high level. Read full text.
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