Wall Street: an American job market in full overheating?

(Boursier.com) – Jan Hatzius, chief economist of the New York investment bank Goldman Sachs, quoted by Bloomberg, specifies that the United States shows the greatest “overheating” of the job market for years 1950! Hatzius says the federal funds rate could peak at more than 4% next year if financial conditions don’t tighten enough and the labor market also remains “hot”. Thus, the Fed could have to raise its rates significantly higher than currently expected, in order to calm this overheating of the American economy. “If the economy doesn’t slow down, and if we, in particular, don’t experience a very substantial slowdown in job growth, then you could be expecting something that goes significantly higher, over 4%,” launched the economist, interviewed by Bloomberg.