UBS Highlights Timing Concerns Over December Fed Meeting Ahead of Jobs Data

Economists urge postponing the Federal Reserve’s December meeting to factor in key labor and inflation data due later that month, aiming for more informed policy decisions.

Summary

The Federal Reserve’s next meeting is scheduled for December 9–10, ahead of the release of November jobs data on December 16 and CPI data on December 18. UBS and economists Gregory Daco and Logan Mohtashami have suggested postponing the meeting so policymakers can incorporate complete economic data into their decisions. Historical precedents in 1971 and 1974 involved similar delays, which helped align monetary policy with the latest labor market insights.

Terms & Concepts
  • FOMC (Federal Open Market Committee): A committee within the U.S. Federal Reserve that sets monetary policy, including interest rates.
  • Jobs Report: An official economic release that provides data on employment, unemployment, and labor market conditions in the U.S.
  • CPI (Consumer Price Index): An economic indicator that measures changes in the price level of a basket of consumer goods and services.