Federal Reserve chairman Jerome Powell, the head of the US central bank, issued a warning this week that the bank would increase its benchmark rate sooner and further than anticipated because he was concerned that the process of bringing prices under control was slowing.
One of the things keeping pressure on pricing, according to him, is the robust job market.
The increase in employment in February came after a boom in hiring in January that astounded economists.
According to the most recent US Labor Department data, the tight labor market has contributed to the increase in earnings, with the average hourly pay in February being 4.6% more than it was a year ago.
Many economists claim that there is a considerable likelihood that the US economy would slow significantly and enter a recession despite the strong labor market.
Consumer spending is being affected by the rising cost of living, and borrowing money is becoming more expensive for businesses and people due to higher interest rates.
Yet according to University of Michigan professor of public policy and economics Justin Wolfers, worries about a harsh economic collapse are exaggerated.
The February job increases may disappoint Americans wanting to get a mortgage, but for everyone else, according to him, they should be taken as a sign that the economy is doing well and is expected to continue doing so.
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