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Weak jobs data leaves room for potential Fed rate increases

The New York Times says Fed officials are still prioritizing the inflation outlook after the economy showed continued pressure toward overshooting the 2 percent target.

Reported · Written up by our desk · Central Banks

A weak jobs report is not enough to end the debate over whether the Federal Reserve may raise interest rates further, according to the New York Times.

The outlet said Fed officials are primarily focused on the inflation trajectory, after inflation has overshot the central bank’s 2 percent target for about five years.

In that framing, labor market softness does not automatically remove the possibility of additional rate hikes if inflation progress remains uncertain.

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