The labor market tightness has strengthened the case for the Federal Reserve to maintain its aggressive stance. Moreover, in the minutes of its December meeting, the Central Bank stated its determination to ignore market opinions and keep raising interest rates until inflation returns to the desired 2% level.
On the other hand, the head of the International Monetary Fund cautioned that this year would be “tougher than the year we leave behind,” with a third of the world’s economy anticipated to be in recession.
