The jobs report came out today and the economy added around 250k jobs last month.
But, in order to cool the self-inflicted wound that is inflation, that number has to go down. Way down.
The market wanted to see job loss or at the very least a slowdown in growth. Had priced in closer to 100k. Because wage growth is the “primary driver of inflation” because corps would rather pass the costs to the consumer than eat into profits.
The Fed is trying to force hiring to drop by raising borrowing rates. Which makes it costlier for corps to move money, which eats into the profits, and forces them to slow their hiring.