The Federal Reserve announced on Wednesday that it would this month start scaling back the amount of money it is pumping into the economy through monthly bond purchases.
That was the lowest level since the middle of March in 2020, when mandatory business closures were being enforced to slow the first wave of COVID-19 infections.
The summer wave of infections driven by the Delta variant has subsided, encouraging more Americans to travel, dine out, frequent sporting venues and engage in other activities that were curtailed by the resurgence in cases.
The number of people continuing to receive benefits after an initial week of aid dropped 134,000 to 2.105 million in the week ended Oct.
According to a Reuters survey of economists, nonfarm payrolls likely rose by 450,000 jobs.
Expectations for an acceleration in job gains were bolstered by the ADP National Employment Report on Wednesday, which showed strong growth in private payrolls in October.
But relentless worker shortages remain an obstacle.
There are concerns that the White House’s vaccine mandate, which comes into effect on Jan.
A report on Thursday from global outplacement firm Challenger, Gray & Christmas showed job cuts announced by U.S.-based employers increased 27.5% in October to 22,822, the highest since May.
With workers scarce, companies are raising wages.
Strong wage gains, together with rising rents, pose a challenge to the Fed’s narrative that high inflation is transitory.
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