Help
Job openings dip to 2021 lows
U.S. job openings fell to 7.673 million in July 2024, the lowest since January 2021, signaling a significant cooling in the labor market
Bank of Canada cut its rate by 25bps to 4.25% in September
U.S. job openings fell to 7.673 million, a low since January 2021
Fed's Bostic is now balancing inflation control with employment stability
Bank of Canada cuts rates by 25bps, as expected
The Bank of Canada has reduced its benchmark interest rate by 25 basis points to 4.25% during its September 2024 meeting, in line with market expectations. This marks the third consecutive 25 basis point cut, following a 10-month pause at a terminal rate of 5%. The central bank cited persistent excess supply in the Canadian economy, which continues to exert downward pressure on inflation, as the rationale for extending its rate-cutting cycle. Additionally, the Governing Council highlighted the recent slowdown in the labor market, though it noted that wage growth remains relatively high compared to productivity levels, supporting the case for looser financial conditions.
U.S. job openings drop to 2021 lows
Job openings in the United States fell by 237,000 to 7.673 million in July 2024, reaching their lowest level since January 2021. This figure is down from a downwardly revised 7.91 million in June and falls significantly short of market expectations, which had forecast 8.1 million openings. The data reflects a cooling in the labor market as the economy adjusts to the ongoing monetary tightening by the Federal Reserve.
Fed's Bostic signals shift in focus as inflation eases and labor market cools
Atlanta Federal Reserve President Raphael Bostic signaled a shift in his policy focus as inflationary pressures ease and the labor market cools. In an essay published today, Bostic noted that while he has been "intensely focused" on controlling inflation for the past three years, his attention is now rebalancing towards both price stability and maximum employment—the Fed's dual mandate.
Bostic acknowledged that inflation remains a concern, stating, "I am not quite prepared to declare victory over inflation," but he emphasized the need to avoid keeping monetary policy too restrictive for too long. He warned that maintaining high interest rates until inflation reaches the 2% target could lead to "labor market disruptions that could inflict unnecessary pain and suffering." Instead, Bostic stressed the importance of a balanced approach, considering the broader economic context.
