U.S. job openings fell less than expected in November as the labor market remains tight, which could see the Federal Reserve boosting interest rates to a higher level than currently anticipated to tame inflation, Reuters reported. There was, however, encouraging news in the inflation fight, with a survey from the Institute for Supply Management (ISM) yesterday showing its measure of prices paid by manufacturers for inputs diving in December to the lowest level since February 2016, discounting the plunge early in the COVID-19 pandemic. The Fed is engaged in its fastest interest rate-hiking cycle since the 1980s as it tries to dampen demand, including for labor, to quell inflation. Last month, the U.S. central bank projected interest rates could rise to a peak of 5.1%. But persistent labor market tightness has led economists to expect that borrowing costs will increase to a much higher level and remain there for a while. "The labor markets are still too darn hot for policymakers," said Christopher Rupkey, chief economist at FWDBONDS in New York. "Fed officials won't be confident their monetary tightening is working until hiring demand begins to slow."
