by Wolf Richter
Wolf Street
The low point was in September. The Fed faces a scenario of re-accelerating inflation amid a retightening labor market.
The Fed has cited the underlying dynamics of the labor market that were deteriorating through September as one of the reasons for its rate cuts. But since September, these dynamics of the labor market, and other metrics of the labor market, have U-Turned, with the labor market solid and tightening just a tad, while inflation has been re-accelerating since July. And these underlying dynamics are further backing the Fed’s pivot to wait-and-see: