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.

The value of investments will fluctuate, which will cause prices to fall as well as rise and you may not get back the original amount you invested. Past performance is not a guide to future performance.

Laura Frost

Job Title: Investment Director

Specialist Subjects: Macro economics, IG credit, currencies

Likes: Rugby, cycling, countryside

Heroes: Steve Redgrave, Princess Anne, Michelle Obama

View profile
Blast from the Past logo Blast from the Past logo

16 years of comment

Discover historical blogs from our extensive archive with our Blast from the past feature. View the most popular blogs posted this month - 5, 10 or 15 years ago!

Next Blogs