Commentary
The recent Index of Supply Manufacturers data showed that fewer employers are planning to hire in the months ahead. That’s because inflation is whittling away buying power, leaving Americans with less discretionary income to spend. Less income translates to lower demand for goods—and for the workers who produce these goods.
In an effort to curb record inflation, the Federal Reserve has rapidly raised interest rates from zero to four percent over the course of just seven months. After announcing a fourth consecutive 0.75 percent rate hike earlier this month, Federal Reserve Chairman Jerome Powell delivered a stark, yet determined message: “I just think that the inflation picture has become more and more challenging over the course of this year, without question. That means that we have to have policy being more restrictive, and that narrows the path to a soft landing.” Translation: The Federal Reserve is committed to breaking the back of inflation, even if it means plunging the U.S. economy into a recession….