Yet again, fresh data has shown the US economy’s resilience seemingly knows no bounds, with robust demand keeping inflation elevated and heaping pressure on the Federal Reserve to keep raising rates for longer. Retail sales rose last month by the most in almost two years, and separate measures of manufacturing also came in better than expected, according to reports released Wednesday. Combined with Tuesday’s inflation report, which showed the overall rate slowing just slightly, the figures reveal an economy spurning Fed efforts to rein it in. “The economy is generally performing better than expected,” said Bill Adams, chief economist for Comerica Bank. “These data collectively make the Fed more likely to surprise to the upside.” Here’s your markets wrap.
Sometimes, conventional wisdom is that way for a reason. Take the one about how if you really want a big raise, you have to jump. The historically tight US labor market has been proving that one true of late—in spades. Almost half of the workers who changed jobs in recent years were rewarded with a pay raise that exceeded the rate of inflation. Apparently, it pays to quit.
