A surprisingly strong jobs report and stubborn inflation have all but settled the Fed's December decision, even as households and homebuyers keep feeling the squeeze.
- According to the Bureau of Labor Statistics, the October jobs report showed 165,000 new jobs, almost three times what forecasters expected.
- Unemployment slipped to 4.1%, and paychecks grew 0.4% in a single month, the fastest pace since January.
- Job openings climbed to 7.5 million in September, more than expected, even though hiring remains slow.
- Consumer prices rose 0.4% in October and core prices were up 0.3% for the third month in a row, while the annual inflation rate could not be published because prices were never collected during last year's shutdown.
- Producer prices rose a calmer 0.3% in October after September's jump, but they are still up 6.5% from a year ago, the most since 2022.
- Fed funds futures pricing now treats a December rate hike as a sure thing, with some traders even betting on a half-point move.
- The University of Michigan's consumer survey found sentiment rose to 51, the best reading since August, while expected inflation eased to about 4.3%.
- Federal Reserve data show credit card balances grew in September at their fastest pace in nearly three years.
- Per the National Association of Realtors, existing home sales fell to their slowest pace since 2010, even with more homes for sale than at any point since 2019.
For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.
