hello and welcome to audiences in the uk and around the world. we begin in the us where the central bank is expected to increase interest rates by another 75 basis points today which would be the fourth consecutive increase of this size. many are hoping for signs the federal reserve may soften its approach in the months ahead with markets anticipating a 0.5% rate rise in december. so what s different within the us economy that would lead the fed to change its current course? here s michelle fleury. since march the federal chair hiked the rate by three percentage points, in so doing caused more expensive loans on everything, from houses to cars and credit cards, so far they have done so without any damaging slowdown in job have done so without any damaging slowdown injob or growth wealth creation. the trouble is there is no sign of a living rolling off with consumer prices, inflation still high at over 8% and still the fed has focused on. and until it sees inflation coming
hiring and employers are sticking around more. you also in the last month have to remember that we saw the numbers boosted slightly because remember the auto workers who are members of the auto workers union and as well as the actors in hollywood, though strikes and it s that help to boost novembers numbers but i think this slowdown shows that you are still seeing a strong amount ofjob growth. remember by historical standards this is still a good number. but it is a slower rate but we have seen in the past and thatis but we have seen in the past and that is significant because the federal reserve, america s federal bank, has raised interest rates from zero in march 2021, 2022 to above 5% in a short order to try to tackle inflation. it is beginning to ease and i think people will look at this number to say if we see a slowdown injob number to say if we see a slowdown in job growth may number to say if we see a slowdown injob growth may be number to say if we see a slowdown in
percentage points, in so doing caused more expensive loans on everything, from houses to cars and credit cards, so far they have done so without any damaging slowdown in job have done so without any damaging slowdown injob or growth wealth creation. the trouble is there is no sign of a living rolling off with consumer prices, inflation still high at over 8% and still the fed has focused on. and until it sees inflation coming back on it looks like the reserve keep making life harder for american borrowers, and keep running the risk of putting people out of work, tipping the economy into recession. well, let s talk about that risk now with ed price an economist and principal at ergo intelligence. what are your thoughts, i m assuming are with the majority that believe we are looking at a 75 basis point rise today? at a 75 basis point rise today? git least i wouldn t be surprised