Adding 517,000 jobs?

The labor market continues to defy expectations as the latest jobs report shows a blowout performance in January with non-farm payrolls surpassing expectations by adding 517,000 jobs. Unemployment rate dropped to a record low of 3.4% and average hourly earnings rose by 0.3% MoM and 4.4% YoY. Despite Fed's efforts to slow the economy and curb inflation through interest rate hikes, the U.S. labor market remains strong. This is a major confounding factor for the Fed as it struggles to balance the economy and reduce inflation. Stocks took a hit following the report as investors grapple with the reality that the Fed may not pause its rate-hiking campaign. Widespread job gains across industries including leisure and hospitality, professional and business services, and health care shows a robust economic recovery. The labor market is heating up and the Fed may have a tough time cooling it down.” #LaborMarket #StockMarket #FederalReserve #Economy