The November US labour market report showed a rebound, with nonfarm payrolls rising by 227k. However, unemployment rose to 4.2%, and participation rate fell to 62.5%.
Earnings rose by 0.4% MoM for the second straight month, and by 4.0% YoY. This pace is unlikely to threaten sustained achievement of the 2% inflation target.
The FOMC will likely deliver a 25bp cut later this month, continuing to normalize monetary policy, but may take a slower pace of normalization if labor market resilience persists.
Next year will likely see heightened uncertainty in monetary and fiscal outlooks, particularly with incoming tariffs and tax cuts under the Trump Administration.
Collection
[
|
...
]