The unemployment rate dropped to 3.5% in September as employers hired more workers than expected. A tight labor market might keep the Federal Reserve on its monetary policy tightening campaign for a while.
New York Federal Reserve President John Williams said that the U.S. central bank has more work to do to lower inflation and rebalance economic activity in a more sustainable way. Williams said the U.S. economy has “a very strong labor market, which is a good thing except for very high inflation,” and hence its being countered by central bank rate rises.
