Is the US actually adding new jobs? Is inflation genuinely easing? Investors will soon discover the answers
Shifting Priorities for the Federal Reserve
Last autumn, the Federal Reserve was primarily concerned about signs of weakness in the U.S. job market. Recently, however, their attention has turned once again to persistent inflation. This week, investors are awaiting two crucial reports—one on employment and another on consumer prices—that will influence the timing and likelihood of any interest rate reductions by the Fed this year.
In response to higher unemployment and a marked slowdown in hiring, the central bank lowered a key interest rate three times late in 2025, aiming to prevent further deterioration in the labor market. Did these efforts pay off? The final two months of 2025 saw a partial rebound in hiring, suggesting some stabilization...
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