The Federal Reserve’s (Fed) interest rate decision on Wednesday and new employment data will be the primary focuses for investors this week. A fourth-consecutive 75-basis-point rate hike by the Fed is a near guarantee but markets will be looking for some sign during Fed Chair Jerome Powell’s press conference that smaller rate hikes may begin in December.
The employment picture in the United States has to-date remained surprisingly resilient to aggressive monetary tightening and weakening global economic growth. This week’s economic calendar will provide two new data points to indicate whether the Fed is making progress to cool the job market — the Job Openings and Labor Turnover Survey number on Tuesday and the October employment report Friday. Both reports are expected to show signs of slowing, which would be welcome news for Fed policymakers increasingly worried about the risk of over-tightening.
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