Prior to the surge in Covid-19 cases related to the Omicron variant, U.S. job growth is expected to accelerate in December, which will strengthen the Fed’s decision Tend to How fast does it reduce the amount of stimulation it provides.

According to consensus forecasts compiled by Bloomberg, employers are expected to add 444,000 jobs last month, more than double the 210,000 jobs create November.

After falling sharply last month, the unemployment rate will fall further. Economists forecast a decline of 0.1 percentage point to 4.1%.

The US Bureau of Labor Statistics will release the data at 8:30 am Eastern Daylight Time on Friday. The data will also show that the proportion of people who are employed or looking for work has improved slightly again.

Concerns about Covid infection and childcare issues are mainly due to hindering the return of a larger number of jobs, keeping the so-called labor force participation rate below the level expected by economists during the economic recovery phase.

It is expected to rise slightly to 61.9% in December, higher than the 61.8% in November, but still more than 1 percentage point lower than the pre-pandemic threshold.

U.S. central bank officials are waiting for further improvement in the labor market before implementing a plan to raise interest rates amid extremely high inflation. The Fed has stated that it will postpone the “raising” of the main policy interest rate from an ultra-low level until it achieves an average inflation rate of 2% and maximizes employment.

According to senior officials, the first goal is to “exceed expectations.” minute Begin with the December policy meeting, and “quickly” move forward with the second meeting. Several members of the Federal Open Market Committee and the chairpersons of the regional chapters stated that labor market conditions “have basically been in line with” employment maximization.

Some people even speculate whether it is appropriate to raise interest rates before maximizing employment, especially as the problem of price stability becomes more serious.

Fed Governor Christopher Waller and St. Louis Fed Chairman James Bullard and others support Interest rates were raised in March and additional adjustments will be made later this year. Most Fed officials expect to raise interest rates three times in 2022 and five more by the end of 2024.

The minutes of the meeting show that the economy may also be in a strong enough position that the Fed can begin to reduce the size of its huge balance sheet after the first interest rate adjustment. This is another substantial step to cancel easing.

The decision directly stems from the rapid acceleration of inflation, and now Circling Reached the highest level in nearly 40 years. Federal Reserve Chairman Jay Powell recently stated that the central bank is closely monitoring wage growth to find further evidence that inflation may become a more permanent problem.

Economists predict that average hourly income growth in December will slow slightly, with a year-on-year growth of 4.2%, down from 4.8% in November. This means an increase of 0.4% month-on-month.