News You Need To Know on Jan. 6, 2023

If you were worried about a adjacent recession, you can stop worrying – at least for now. The Labor Department released its latest job reports this morning, showing not only the US economy added 223,000 jobs last month, but the unemployment rate fell from 3.7% to 3.5% before the month. The numbers suggested that the labor market is stronger than economists, was estimated to be unchanged at 3.7% with unemployment rate, while the economy was expected to add just 200,000 jobs.

Today’s report is one of the first major pieces of economic data being released in the new year and is being closely seen as investors, economists, and others are growing rapidly that the recession came in 2023.

The shares increased after a strong report, as investors shook the recession concerns. But as we have written earlier, we are not out of the forest yet. As the economy continues to move at such a strong pace, the Federal Reserve is being given more space to continue to continue to be aggressive in its inflation battle.

The next policy meeting from the Central Bank stops at the end of the month, and as we get close to the date, the stock can take us to a bumpy ride as investors are worried about how aggressive the Fed will be. The rate hike will probably help our wallet by reducing inflation, but can sting us elsewhere as the bank loan becomes more and more expensive.

Next week, everyone’s eyes will be on inflation figures, when the Labor Department issues the Consumer Price Index (CPI), showing how far inflation has gone after a series of increase in jumbo-shaped rate from Fed.