What will the Fed take into consideration as it decides on further rate hikes?
Next week the US Federal Reserve is expected to announce further changes to the Effective Federal Funds rate.
Many economic factors will influence the decision over the expected increase.
In early February, the Bureau of Labor Statistics reported that in December, 4.1 million people voluntarily left their jobs. This was the highest number recorded in over four months and is a sign that the labor market remains tight. When economic conditions favor workers, many feel more willing and interested in switching roles, companies, or industries.
Additionally, the BLS reported that in January, the economy added over half a million jobs, far exceeding most projections. Officials at the Federal Reserve have said that the tightness of the labor market is one factor pushing up prices.
Chairmen Jerome Powell has warned that the impacts of rate increases have not taken effect. In January Consumer Price Index tracked an average increase of 0.5 percent in goods across the market. It remains to be seen whether or not the Federal Reserve will continue pushing up rates slowly or move more quickly in light of the January inflation report.
