How Jobs and Prices Drive Rate Cuts
Recently the US labour market has been flashing signs of weakness, and this week’s revisions pushed job numbers even lower. That matters because the strength of the labour market often sets the tone for the economy – more jobs usually mean more spending, while slower job growth suggests things may be cooling. Against that backdrop, attention this past week turned to two key inflation reports: the Producer Price Index (PPI) and the Consumer Price Index (CPI).