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Economics

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%
Bloomberg business news
Fed Has 'Some Ways to Go' on Rates, Powell Says

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.