On Wednesday, the Federal Reserve left interest rates unchanged after 10 consecutive hikes since March 2022. The Fed revised up its expectation for growth in 2023 and revised down how much it expects the unemployment rate to rise. In other words, the Fed acknowledged a recession is unlikely this year.
“The labor market has surprised many, if not all, analysts over the last couple of years with its extraordinary resilience,” said Chair Jay Powell, before noting that supply and demand in the labor market are coming into better balance. We see that the labor market remains tight but is