After the positive reaction from markets to the fed hike and #cpinumber last week, comments from fed officials have come up stating the fed will continue hiking until inflation is under control, and 7.7% is too high to be considered under control. At the same time, layoffs and hiring freezes have been announced, particularly in the tech sector. The question then is: at what level of unemployment will there be enough demand destruction, caused by tightening, in order for inflation to be at 2ish%? According to the chart below, unemployment will have to raise to 6.4% to hit the fed inflation target. It currently sits at 3.7%.
Want to know more? join Fund@mental here https://lnkd.in/ewBZ9GK4
![](https://static.wixstatic.com/media/7b1f28_bffb6af099b045e6a5a1834a798318dc~mv2.jpg/v1/fill/w_161,h_128,al_c,q_80,usm_0.66_1.00_0.01,blur_2,enc_auto/7b1f28_bffb6af099b045e6a5a1834a798318dc~mv2.jpg)