What’s the Fed to do with a hot jobs market?

2022 has felt, in a multitude of ways, like a decade by itself. Economically, Americans are feeling bruised by inflation; a hot housing mark

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2022 has felt, in a multitude of ways, like a decade by itself. Economically, Americans are feeling bruised by inflation; a hot housing market was thrown into turmoil by a spike in interest rates (which are already falling again); and massive tech layoffs have other sectors worried about job cuts, too. Just in time, the monthly jobs numbers! What else but a robust November report showing nonfarm payrolls increased 263,000, paired with rising wages? Such a jobs landscape paired with the Federal Reserve's rate increases has markets in fits. But as Jonathan Levin writes, "the service sector is probably the most vexing piece in the US inflationary puzzle." How will the Fed will react to Friday's jobs data — particularly service-wage inflation? Here's what else Bloomberg Opinion writers have had to say this week on recession worries, lingering inflation and managing economic expectations. Powell and the Markets Talk Past Each Other — Mohamed A. El-Erian This Holiday Season Buy Now, Pay (and Worry) Later — Alexis Leondis and Leticia Miranda It's Still Too Soon to Relax on Inflation — Bloomberg's editorial board Goldman Sachs Traders Won't Be Alone in Their Bonus Blues — Paul J. Davies Recession Anxiety? Not in the Credit Market — Jonathan Levin Renters Are Finally Catching a Break — Conor Sen The Fed Is Now Relying on a Miracle to Save the Economy — Karl W. Smith Stagflation Is Just What the Economy Needs — Narayana Kocherlakota This is the Theme of the Week edition of Bloomberg Opinion Today, a digest of our top commentary published every Sunday.

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