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The Fed Is Committed To Lowering Inflation At Job Market Expense

While CNBC is not necessarily known as the most non-partisan entity, Marc Sumerlin is not prone to hyperbole.

In his view, Fed Chairman Powell is committed to breaking the trend of an expensive labor market. Unemployment numbers must rise in order to reduce the amount of discretionary funds available in the US economy. These two figures could be the necessary factor for reducing demand for all kinds of goods throughout the US economy.

Marc Sumerlin – Evenflow Macro Managing

GDP & Unemployment – Recession

A cutback on spending is thought to reduce the amount of inflationary pressure on the overall economy. One of the primary drivers could be general consumer sentiment. Still, a decent explanation besides the fact that the Fed has acted as a guarantor for equities is simply the fact that there has been a lot of stimulus to both remove hesitant workers from the labor pool while also simultaneously providing them with spending subsidies via unemployment.

Why a 2022 Recession Would Be Unlike Any Other | WSJ