Economic scenarios post-FOMC and employment report

Last week, the first FOMC meeting of 2023 went as the market expected with the Fed only hiking rates by 25bps, with a fairly dovish tone in Fed Chair J. Powell's remarks. However, the employment report was a surprise, with hiring numbers nearly tripling expectations, alongside the lowest unemployment rate since 1953. Even more notably, this labor report came amid falling wages and mass layoffs of white-collar workers from companies.  

• What's happening with the inflation-unemployment-Fed monetary policy triad?

• Is the current state of the economy going against traditional economic theories built on economic history? 

• What scenarios could occur for the economy?

This week's macroeconomics article from Viet Hustler will bring you detailed analysis on last week's FOMC, the impact of the labor market on the Fed's upcoming policy and the economy.