More rate hikes are coming this year
Nicole Goodkind, 6/5/23, CNN, “Markets may be overly optimistic about the Fed,” https://www.cnn.com/2023/06/05/investing/premarket-stocks-trading/index.html, mm
The past month’s economic data has highlighted the persistent, sticky nature of inflation and the resilient strength of the labor market in the United States. Economists say that could mean more rate hikes from the Federal Reserve are coming, but investors appear sanguine. May saw payrolls increase by almost double the average monthly gain in the 10 years before the pandemic, while the Federal Reserve’s preferred inflation gauge bounced higher in April. Spending also remains strong. In this good-is-bad economy, strong employment and higher wages mean higher inflation as companies pass on increased labor costs by raising the price of goods. That makes it more difficult for the data-dependent Federal Reserve to justify a pause to interest rate hikes at its June meeting.