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Fed to deliver another big rate hike as job market fails to cool

Sven
edited October 2022 in Other Investing
Brace yourself that a 75 bps rate hike is coming next month. Labor cost (service cost) is unlikely to come with lower employment rate reported today.

https://fidelity.com/news/article/top-news/202210070938RTRSNEWSCOMBINED_KBN2R21CN-OUSBS_1



Comments

  • LewisBraham
    @Sven You could probably move this post out of "Off Topic" and into "Other Investing." It's definitely on topic.
  • Sven
    Thanks. Will do.

    Higher labor cost (service) is one of the structural issues of high inflation that is not readily solved by raising interest rate.
  • CrashCrash
    truth.
  • Old_JoeOld_Joe
    Some of us have speculated that the long term national loss of union organization has been a significant factor in the minimization of income for many types of labor. Without any desire to argue the accuracy of that sentiment, let me just say that the current trends to unionization at labor intensive workplaces such as Amazon and Starbucks would seem to be a relatively new factor in the increase of service labor costs, as mentioned by Sven.
  • CrashCrash
    Old_Joe said:

    Some of us have speculated that the long term national loss of union organization has been a significant factor in the minimization of income for many types of labor. Without any desire to argue the accuracy of that sentiment, let me just say that the current trends to unionization at labor intensive workplaces such as Amazon and Starbucks would seem to be a relatively new factor in the increase of service labor costs, as mentioned by Sven.

    @sven is right. So is @Old_Joe. Workers deserve not to live in poverty when CEOs are filthy rich.
  • yogibearbullyogibearbull
    Fed fund futures market-based projections are 75-50-25-pause bps-hikes at Nov, Dec, Feb-later FOMC with terminal rate of 4.50-4.75% (current 3.00-3.25%). Remember that the Fed controls the ST rate only. The US/global factors determine IT/LT rates.
    https://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html
  • johnNjohnN
    edited October 2022
    Any prediction for CPI tomorrow
    Inflection point?
    Green day?
  • yogibearbullyogibearbull
    @johnN, September CPI +8.1% y-o-y is the consensus. I used it to estimate the new I-Bond rate (November 1) in this link that I will update tomorrow. BTW, est for Social Security COLA will also firm up tomorrow.
    https://www.mutualfundobserver.com/discuss/discussion/comment/154463/#Comment_154463
  • johnNjohnN
    @_Yogibearbull

    Ty
    Will get out popcorn watching fireworks

    No more dry powder
    Watching sidelines
  • hank
    edited October 2022
    “This has gone quite far enough!”

    - The Beast to Simon in William Golding’s Lord of the Flies
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