The Conference Board said Monday that its employment trend index, a combination of leading job market indicators, ticked up last month. Some forecasters are more bullish on the state of the jobs market. “We could see six months of weakness in the labor market,” he said. Gapen said that although recessions tend to have “quick snapbacks,” the Fed’s stance on keeping rates high for an extended period suggests “maybe this plays out a little longer.” “They’ll accept some weakness in labor markets in order to bring inflation down,” Gapen said.įed officials have said interest rates will need to stay at “restrictive” levels for a period of time. Fed officials have made clear they are in no rush to shift out of inflation-fighting mode to save the economy from a slowdown or even a recession. central bank is raising interest rates at the fastest pace in at least four decades in a bid to cool inflation.
By comparison, the Fed expects the unemployment rate to hit 4.4% next year. The unemployment rate dropped to 3.5%, tied for the lowest level since 1969.īut Gapen expects the unemployment rate will climb to around 5% or 5.5% over the next year. The companys total revenue, which primarily consists of ad sales, rose to 29.08 billion in the second quarter from 18. Last Friday’s jobs report showed that although the jobs market is slowing down, the United States added a stronger-than-expected 263,000 jobs in September. The company beat Wall Street estimates for quarterly revenue, bolstered by increased advertising spending as businesses build their digital presence to cater to consumers spending more time and money online. staff The company's total revenue, which primarily consists of ad sales, rose to 29.08 billion in the second quarter from 18.69 billion a year earlier, beating analysts' estimates of 27.89 billion, according to IBES data from Refinitiv. Unemployment to peak at 5.5%, Bank of America says Facebook warns growth to slow significantly, mandates vaccine for U.S. “We are looking for a recession to begin in the first half of next year,” Gapen said. /rebates/&252ffacebook-staff-growth-decelerate-mandates-vaccine. Bank of America doesn’t think the Fed will be able to pull that off. In a perfect world, the Fed would slow the jobs market enough to get inflation back to healthy levels, but not so much that it causes significant and persistent job losses.
economics at Bank of America, told CNN in a phone interview Monday. “The premise is a harder landing rather than a softer one,” Michael Gapen, head of U.S.
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