Today’s report is one of the first major pieces of economic data being released in the new year and is being closely watched as investors, economists, and others have been growing increasingly concerned that a recession could hit in 2023. But with unemployment at a low rate, we might be able to shake off those worries for now. Stocks surged after the strong report, as investors shook off concerns of a recession. But as we’ve written previously, we aren’t out of the woods just yet. As the economy continues to move along at such a strong pace, the Federal Reserve is being given even more room to continue to stay aggressive in its inflation fight. The next policy meeting from the central bank kicks off at the end of the month, and as we get closer to the date, stocks could take us on a bumpy ride as investors get anxious about how aggressive the Fed will be going forward. Rate hikes will likely help our wallets by alleviating inflation, but could sting us elsewhere as bank loans become more and more expensive. Next week all eyes will be on inflation data, when the Labor Department releases the Consumer Price Index (CPI), which will show how far inflation has fallen after a series of jumbo-sized rate hikes from the Fed.
