(AURN News) — The Federal Reserve says job growth may be far weaker than recent reports suggest, with some estimates showing little to no net gains after adjustments.
“If you adjust what has been the trend job creation over the past, let’s say, six months, our staff thinks is the overstatement due to overcounting. Effectively, there’s zero net job creation in the private sector,” Federal Reserve Chair Jerome Powell said during yesterday’s Fed meeting.
The Fed held interest rates steady between 3.5% and 3.75%, signaling caution as inflation remains above its 2% target.
But it is the labor market that is raising eyebrows. Powell said that once you adjust for what the Fed believes is overcounting in recent reports, job growth is essentially flat.
He argued that may reflect a shrinking labor force, driven largely by lower immigration and participation.
Still, Powell warned of downside risk. With gas prices up nearly a dollar in recent weeks due to the war in Iran, Americans are once again feeling squeezed.
Click play to listen to the report from AURN White House Correspondent Ebony McMorris. For more news, follow @E_N_McMorris & @aurnonline.
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