That came on the heels of last week’s report that October consumer prices rose less than anticipated, and Fed officials have signaled they are likely done with the three-quarter-point rate increases approved at the central bank’s last four meetings.
Fed officials argue it will be hard for U.S. inflation to ease until the current high demand for workers falls into line with the number of people willing to work – an adjustment that may have begun across the tech firms that were major winners during the peak pandemic months when consumers shopped from home and employees tooled up home-based offices.
New data from the New York Federal Reserve gave a hint that, even as consumer spending has remained relatively strong, consumer finances may be getting stretched by rising prices. Curbing demand is one aim of Fed rate increases that have come at the fastest pace in 40 years on the expectation that less consumption will translate into less inflation.