January’s labor market report showed that nonfarm payrolls rose by 517,000 in the month, nearly triple the Wall Street estimate, and the average hourly earnings rose 4.4% from a year ago.
Federal Reserve Chairman Jerome Powell recently said that while the disinflationary process has started, he expects it to be a long process. Powell also cautioned that the Fed would implement a more hawkish policy if the labor market remained strong or inflation stayed high, which led to a volatile stock market trading session.
