Federal Reserve regulators opted to pause interest rates while continuing to keep a close on forthcoming economic data, such as unemployment and wages. Northwestern Mutual Wealth Management Company CIO Brent Schutte comments on Fed Chair Jerome Powell's statement, how the Fed will be approaching labor market data, and recession risk amid inflation. 'I actually agree with Chair Powell — the base case is not a soft landing even though the numbers they put out today look like a soft landing,' Schutte says on the Fed's economic balancing act. 'I don't think people spend enough time in the labor market, which is too tight according to Chair Powell. To me, that means wages are too strong, and wages running at 4.5% as he said in the last press conference are not consistent with 2% inflation.' For more expert insight and the latest market action, click here to watch this full episode of Yahoo Finance Live.
Federal Reserve regulators opted to pause interest rates while continuing to keep a close on forthcoming economic data, such as unemployment and wages. Northwestern Mutual Wealth Management Company CIO Brent Schutte comments on, how the Fed will be approaching labor market data, and recession risk amid inflation.
"I actually agree with Chair Powell — the base case is not a soft landing even though the numbers they put out today look like a soft landing," Schutte says on the Fed's economic balancing act."I don't think people spend enough time in the labor market, which is too tight according to Chair Powell. To me, that means wages are too strong, and wages running at 4.5% as he said in the last press conference are not consistent with 2% inflation.
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