May 5, 2023
Hot Jobs Report Raises Odds Fed Keeps Rates Higher for Longer
The unexpected pickups in US hiring and wages last month increase chances the Federal Reserve will hold interest rates high for longer and potentially keep the door open to an 11th straight hike in June.
Nonfarm payrolls rose 253,000 last month, a Bureau of Labor Statistics report showed Friday. Economists had expected an increase of 185,000. The unemployment rate fell back to a multi-decade low of 3.4%.
ECB Officials Get Behind Lagarde’s Pledge of More Rate Hikes
European Central Bank officials are rallying behind President Christine Lagarde’s declaration that there’s still some way to go before interest rates reach their peak.
Economists and traders had pared bets in the runup to Thursday’s policy meeting on concern that US banking turmoil would spill over into Europe and curtail the ECB’s hiking cycle.
China’s Xi Vows to Strengthen Party’s Control Over Economy
Chinese President Xi Jinping pledged to further enhance the Communist Party’s control over the economy as he chaired the meeting of a top policy-making body to discuss key development strategies.
The Central Financial and Economic Affairs Commission should “continue playing its role in setting major economic policies,” he said at the group’s first meeting on Friday following the October leadership reshuffle, according to state broadcaster China Central Television. Xi, who heads the commission, vowed to strengthen and improve the party’s “centralized and unified leadership” of economic work.
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