U.S. Added 261,000 Jobs in October 2022

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The employment figures released by the Labor Department indicated that 261,000 jobs were added to the economy in October 2022. The unemployment rate increased from 3.5% in September to the current 3.7%. As reported in the New York Times, the Federal Reserve is concerned that a “hot” job market is forcing employers to increase wages which is leading to higher prices resulting in more inflation. The Central Bank increased interest rates by 3/4% last week and is expected to continue to raise rates. The next rate decision by the Central Bank will be on December 14th.

Inflation Data Still High Through August 2022

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Inflation data released by the Fed today indicates that the consumer price index or CPI continued very high at 8.2 percent in the year through September. When you remove the price increases for food and fuel, prices increased 6.6 percent. The Federal Reserve will continue to raise interest rates to try to control and bring down inflation. Inflation levels are running at 40 year highs and has been responsible to the large downturn in the stock and bond markets.

The monthly inflation data indicated that overall inflation rose 0.4 percent in September which was 0.3 percent higher than in August 2022. Inflation began to rise in January 2021 and has continued now at 40 year highs. Central bankers are expected to continue to raise interest rates which will essentially slow the economy but may also create a recession. Interest rates have been raised five times this year so far.

The new high inflation rate will likely confirm a three-quarter point increase to interest rates in November and even in December 2022.