JOLTS suggests there is evidence of inflationary ahead
The US labour market remains incredibly tight. Job openings came in at 10.45million vs 10.05 expected, we saw a tick up in job openings per unemployed person back to 1.74. In other measures, those voluntarily leaving their jobs which is also a key metric to gauging wage growth, also ticked back up in November. Although we believe the peak of inflation is passed in the US, this set of data is evidence of inflationary pressures ahead. In the other big release yesterday the FOMC minutes for December reiterated that the Fed continued to target inflation, they were still foreseeing future rates hikes, and the need to remain flexible in policy was key. The market expectation was unchanged still pricing about 65bps of tightening through the next few meetings. With payrolls due in on Friday it is a busy week for data giving the Fed plenty to think about heading into the February meeting.
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