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Weak Employment and Rising Prices Raise the Stakes for the Fed



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A weak jobs report in September is unlikely to derail the Federal Reserve’s plans to start slowly withdrawing some economic support this year. But it is the latest indication of the delicate balancing act the central bank is facing as it tries to keep inflation tame while allowing the labor market to heal.The Fed has two jobs: fostering maximum employment and keeping inflation low and steady. In recent decades, inflation has been contained or even tepid, so central bankers have been able to give the labor market plenty of room to heal. But today, inflation has jumped higher, …

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