Federal Reserve’s Fight Against Inflation: Non-Farm Payrolls, Boeing Strike, &

The Federal Reserve’s focus on inflation temporarily shifted to employment in October, as non-farm payrolls data became a significant indicator of the U.S. economy’s performance. While crucial, this data may not be enough to shift market attention away from the risk of a U.S. recession, according to Citi economist Veronica Clark. The October employment data will account for the impact of the Boeing strike and various hurricanes. Clark estimates these factors will lower employment by 70,000 to 80,000 people. Citibank’s outlook for the non-farm payrolls data appears more restrained compared to consensus expectations, predicting 90,000 new jobs and a small increase in the unemployment rate to 4.23%. The bank also expects downward revisions to September’s data to be more significant than usual.

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