The November employment report showed that 1.136 million people found jobs, pushing the unemployment rate down to 4.2%, the lowest level since February 2020. The sharp drop in joblessness continues to put upward pressure on wages. Average hourly earnings rose 0.5% in November, pushing the 12-month gain to 5.9%, the most significant increase of the year.
Recently, Fed Chair Powell said it was time to accelerate tapering because of growing inflation risks. Yet, it was too early to raise official rates because the labor market had not healed fully. The Fed needs to accelerate its tapering of asset purchases and official rate policy moves based on today's employment report.
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