As we settle into 2023, economists and analysts are still trying to answer last year’s two-part question: Is the economy still too strong – and is inflation too high, which means that the Fed will have to keep interest rates higher for longer?
The answer may help determine whether or not the economy slows substantially, prompting the U.S. to enter a recession.
The December jobs report showed how tricky the situation is for the central bank: The economy added 223,000 jobs, which indicates underlying strength in the labor market. But the Fed was likely heartened by the notable slowdown in wage growth to a 4.6% annual pace, the lowest