Deeper US Recession Looms as Resilient Labor Market Spurs Fed
- Labor demand outstripping supply keeps wage pressures elevated
- Unemployment may need to hit 6% for inflation to drop to 2%
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The odds of a US recession are rising. And the chances it will be mild are falling.
The seeds of an eventual downturn are being sown by a taut jobs market that is pushing up wages and inflation, prompting the Federal Reserve to raise interest rates further into restrictive territory to get price pressures under control.