Changes in the labor market and FOMC Meeting Minutes - the Fed's direction?

FOMC Minutes for the December Fed meeting were released right after the holiday break, affirming a hawkish Fed with determination to stabilize prices, despite financial market reactions and recession risks. Accompanying that, November JOLTS employment data confirmed the heat in the labor market as demand exceeds supply, causing investors to worry that the Fed might push peak interest rates above 5% and maintain the peak longer.

However, December wage growth data on the labor market released on Friday made the market quite happy by confirming the opposite: labor demand does not seem too high as before. Slowing wage growth is also hope that inflation, driven by wage growth, may ease. Therefore, the market expects the Fed to pivot earlier than expected.

Faced with conflicting labor market data, what will the Fed's interest rate plan be for 2023? Viet Hustler will analyze in detail the labor market and the Fed's stance through FOMC Minutes and labor data in this weekend's macroeconomic article.  

Comments on the content of FOMC Minutes for the December 2022 meeting

• Summary of FOMC Minutes by Viet Hustler

There are 3 key points to note in the FOMC Minutes: