Federal Reserve Holds Interest Rates | Golden Times

THIS WEEK

the Federal Reserve held interest rates steady for the second consecutive month. Fed Chair Powell and colleagues even upgraded their view of the economy, now describing it as growing

at a “strong pace” compared to the previous “solid pace.” This shift sparked optimism among investors, who believe the Fed’s interest rate hikes might be behind us. As a result, stock markets saw substantial gains.

The U.S. labor market seemed to take a breather after a robust summer. Job growth slowed with 150,000 new positions added, down from 297,000 in September, and the unemployment rate inched up from 3.8% to 3.9%. It had held below the 4% mark for almost two years, but signs of reduced labor force participation and fewer adults at work raised some concerns about labor supply.

On the bright side, hourly earnings saw a modest 0.2% boost in October and a 4.1% increase over the past year. The healthcare sector outshone, adding 77,000 jobs, but the overall job figures were dampened by the recently resolved autoworkers strike, resulting in a loss of 33,000 jobs in vehicle and parts manufacturing.

Israel-Hamas Conflict

As Israel continued to push deeper into the Gaza Strip, Prime Minister Benjamin Netanyahu rejected growing calls for a cease-fire to facilitate the release of the more than 200 Israeli hostages held by Hamas or allow more humanitarian aid to reach Palestinians. “Calls for a cease-fire are calls for Israel to surrender to Hamas,” he said. In a first, Israel rescued a soldier held hostage by Hamas (Hamas had previously released four civilians), but one German-Israeli hostage is believed to be dead. In the US, the Biden administration said it’s taking action to combat antisemitism on college campuses a day after Jewish students at Cornell were threatened with violence.

Secretary of State Antony Blinken delivered a planned, more strident message Thursday before he boarded his plane for a trip to Israel. “As we’ve said from the start, Israel has not only the right but the obligation to defend itself,” he told reporters. “We’ve also said very clearly and repeatedly that how Israel does this matters.”

He said his discussions with the Israelis would focus on “concrete steps” they can take to better protect civilians. “We’ve seen in recent days Palestinian civilians continuing to bear the brunt of this action, and it’s important that the United States is committed to making sure everything possible is done to protect civilians.”