The Federal Reserve, in its most recent meeting, envisions a faster rate hike this year, perhaps as soon as in March, given greater discomfort about high inflation.

Meeting minutes released on last Wednesday indicate officials were concerned that rising inflation and a tight labor market might lead to short-term rates being raised “earlier than anticipated.”

Employers added 199,000 jobs in December, the Labor Department said on Friday. Revisions to the previous two months showed an additional 141,000 jobs had been created above earlier estimates. Over the past six months, the unemployment rate has fallen from 5.9% in June to 3.9%.

Though job growth was slower than economists had predicted in December, the Fed is more concerned about wage growth. Last month, the average hourly wage increased by 0.6%, which brings the yearly wage increase to 4.7%.

According to the minutes, some officials thought the Fed should begin shrinking its $8.76 trillion portfolio of bonds and other assets fairly soon after raising rates. Investors would see the move as another way for the Fed to tighten financial conditions to cool the economy.

The U.S. consumer-price index is forecast to top 7% for the first time since 1982, underscoring the broad inflation pressures affecting the economy during the pandemic.

As a result of supply shortages and rising inflation, retail sales increased modestly in November. In December, those forces are likely to continue to shape spending patterns, although falling unemployment, rising wages, and substantial savings should provide some cushion for households.

Gold price is foretasted to trade in the range of 1815-1775.

Analyzed by: Mr.Nhim Kosol, Independent Analyst