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Both pose potential challenges in an economy where inflation has edged slowly closer to the Fed's 2 per cent target without the recession and large rise in unemployment that some central bank officials felt would be needed for price pressures to ebb, Reuters reported.
The unemployment rate instead fell as low as 3.4 per cent and ended 2024 at 4.1 per cent, close to what many economists think the economy can support without reigniting price pressures; inflation has declined to perhaps just half a percentage point from the Fed's target. Companies added more than a quarter of a million jobs in December, as per the Reuters report.
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