Inflation Jeopardizes the Fed’s Goal for Inclusive Employment
“Broad-based and inclusive.” That’s how officials at the Federal Reserve have taken to describing the maximum employment mandate Congress handed the central bank in 1977. The addition of those modifiers is a shift that came about as part of a 20-month review of the Fed’s monetary policy framework that culminated last summer against the backdrop of a national reckoning on race sparked by the killing of George Floyd. The idea is that economic indicators such as the Black unemployment rate will now be incorporated into assessments of whether or not the U.S. has reached maximum employment.”
U.K. Labor Market Strengthens With Record Jump in Employment
“U.K. companies added to payrolls in November at a record pace and unemployment fell, figures that are almost certain to fuel concerns at the Bank of England that unsustainable inflation pressures are building in the labor market. The Office for National Statistics data Tuesday suggest the end of the government’s job-supporting furlough program on Sept. 30 has done nothing to ease a chronic shortage of workers, which is forcing firms to raise wages and prices.”
India’s Wholesale Prices Unexpectedly Rise to Three-Decade High
“India’s wholesale inflation quickened to the fastest pace in three decades on input costs fueled by high commodity prices and supply constraints. Wholesale prices rose 14.2% in November from a year earlier, data released by the Commerce Ministry showed Tuesday. That’s faster than the median estimate of an about 12% gain in a Bloomberg survey of 19 economists, and is the highest level since December 1991 when the print came in at 14.3%.”
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