Bank of America on Friday warned that the Federal Reserve’s policies aimed at tackling inflation could see the U.S. economy start losing tens of thousands of jobs a month beginning early next year.
While American employers slowed down hiring in September, the United States still added 263,000 jobs, down from an upwardly revised 537,000 in August, according to data from the Bureau of Labor Statistics (BLS). That figure was more than the 250,000 new jobs that economists had anticipated.
Those job gains will likely prompt the Federal Reserve to continue with its aggressive policy aimed at reducing demand and thus inflation.
In its note to clients, first reported by CNN on Monday, Bank of America said the pace of job growth is expected to be roughly cut in half during the fourth quarter of this year.
Overall, as pressure from the central bank’s aggressive interest rate hikes builds, nonfarm payrolls will begin shrinking…
