US President Joe Biden calls labor market numbers ‘a sweet spot,’ expects Fed to call off interest rate hikes | Mint
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Business News/ News / US President Joe Biden calls labor market numbers ‘a sweet spot,’ expects Fed to call off interest rate hikes
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US President Joe Biden calls labor market numbers ‘a sweet spot,’ expects Fed to call off interest rate hikes

US President Joe Biden said Friday’s labor market report shows the labor market remains resilient as inflation continues to ease. He further hoped that the Federal Reserve would not raise interest rates further.

US President Joe Biden said labor market report shows the labor market remains resilient as inflation continues to ease and expects FED to not raise interest rates. (REUTERS)Premium
US President Joe Biden said labor market report shows the labor market remains resilient as inflation continues to ease and expects FED to not raise interest rates. (REUTERS)

President Joe Biden said Friday’s jobs report shows the labor market remains resilient as inflation continues to ease, an economic “sweet spot" that he said shouldn’t prompt the Federal Reserve to raise rates further.

Also read: RBI MPC highlights: MPC to be on high alert to any signs of derailing of the ongoing disinflation process, says Das

The comments marked a rare example of Biden weighing in on central bank policy making. They came as the president gears up for a reelection campaign that will be decided in part on his stewardship of the US economy, which voters have rated poorly, polls show.

Also read: RBI MPC Meeting: Repo rate unchanged; growth forecast raised; 7 key highlights of December policy meeting

The US labor market unexpectedly strengthened in November, adding 199,000 jobs and showing wage growth that tempered bets the Fed would cut rates early next year. That should be considered a “solid, steady" increase, Biden said Friday.

Also read: US Federal Reserve to move ‘carefully’ on interest rates, says Chair Jerome Powell; notes easing inflation

The president called the figure “a sweet spot that’s needed for stable growth and lower inflation, not encouraging the Fed to raise interest rates," during a speech in Las Vegas, Nevada.

The White House did not immediately respond to a request for comment on the president’s remarks. 

Also read: After RBI MPC verdict today, US Fed to unveil policy decision next week: Here's what experts predict

Recent presidents have refrained from routinely commenting on the Fed, wary of eroding the bank’s traditional independence to set monetary policy and giving the impression that decisions are driven by politics.

Also read: RBI monetary policy: Governor Das says central bank working on establishing cloud facility for financials

Biden’s predecessor, Donald Trump, however, repeatedly attacked Federal Reserve Chairman Jerome Powell over the bank’s policy. Trump nominated Powell to lead the Fed in 2017, and Powell took over the next year. 

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This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.

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Published: 09 Dec 2023, 07:43 AM IST
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