As per the minutes released recently from the central bank’s December meeting, the Fed officials are committed to fighting inflation and expect higher interest rates until more progress is made. Moreover, the FOMC had already expressed the importance of keeping the restrictive policy in place while inflation holds unacceptably high.
Additionally, the number of Americans filing new claims for jobless benefits dropped to a three-month low last week, signaling continued historic tightness in the labor market. On top of it, layoffs fell 43% in December, and Thursday’s ADP National Employment report showed a higher-than-expected rise in private employment.
