WASHINGTON, Oct 4 — The US economy is likely to slow as the central bank continues its battle against high inflation, newly-installed Federal Reserve Governor Philip Jefferson cautioned today.
Echoing comments from other central bankers, he said the Fed is “resolute” in its commitment to bringing prices down but warned that “restoring price stability may take some time and will likely entail a period of below-trend growth.” However, stock markets have recovered in recent days amid rising hopes the Fed might pull back amid signs the pressures might be easing.
And new data from the Labour Department today showed the number of job openings fell sharply in August, to 10.1 million, the lowest level since June 2021. That in turn lowered the ratio of openings to unemployed workers — a key indicator of strains in the labour market — to 1.7, from 2.0 in the prior month.