The new date is Oct 7, 2022.
The head-scratching but fundamental economic concept that lower unemployment and higher wages are bad omens for the market was shown to be true by the stock market's tumble early Friday.
The stock market falls as interest rates go up.
The S&P 500 and the tech-laden Nasdaq dropped 2.5% and 1.8%, respectively, on the third day of losses for the blue-chip index.
The dip followed the release of the Labor Department's highly anticipated monthly jobs report, which showed the country added 263,00 jobs and the unemployment rate fell.
Jeffrey Roach said in a statement that the decline in the unemployment rate will likely frustrate the Fed as tight labor markets could drive up wages, alluding to the Fed's fight to combat the worst inflation in four decades.
ThePhillips Curve, a concept familiar to Economics 101 students, shows that unemployment rates and inflation are inverse.
Powell said in August that the labor market is out of balance and that a weaker labor market is needed to bring down inflation.
Corporate earnings suffer due to companies becoming less willing to borrow money at higher interest rates.
There is a percentage. Clinton era Treasury Secretary Larry Summers said Thursday that high unemployment is needed to tame inflation.
The central bank has hiked the federal funds rate five times since March to its highest level since 2008. The market is on pace for its worst year since the Great Recession as rates have surged. Most of the layoffs in recent months have been due to poor macroeconomic conditions.
After his firm reported a massive increase in job cuts and hiring intentions, Andrew Challenger of the career services firm said the labor market is beginning to show some cracks.
The Fed isn't able to affect the labor market, instead relying on the trickle down effect of rate hikes leading to slumping corporate profits due to the higher borrowing costs. The Fed's hope for higher unemployment is cruel and misguided according to Sen. Elizabeth Warren.
The unemployment rate fell in September as the labor market added 263,000 jobs.
The stock market may be hurt by higher interest rates. Here's how strategic investors adjust to higher rates.
Here are the major U.S. layoffs this year.
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