Analysis: The bizarre divergence of U.S. economic data has put the Fed in a policy dilemma.

BlockBeats news, on November 24, the U.S. economy is showing perplexing anomalies, which have made policymakers tasked with the dual mission of curbing inflation and maintaining the labor market uneasy. Data from the Labor Department shows a reduction in jobs in June and August, with an average of only about 62,000 new jobs added over the three months ending in September. However, worker productivity, a key driver of economic output, remains high. The Gross Domestic Product (GDP), which measures the output of all goods and services in the economy, also remains strong. This paradox of economic expansion coexisting with a weak labor market poses a dilemma for Fed policymakers, making it difficult for them to determine whether the economy needs to cool down or be stimulated. Economists believe it is still uncertain whether interest rate cuts can ultimately offset the erosion effect of significant policy changes on hiring. Ryan Sweet, chief U.S. economist at Oxford Economics, stated, “Fortunately, we have not seen large-scale layoffs; otherwise, a lack of job expansion would lead to an economic recession. The economy can grow without creating a lot of jobs, but the premise is that productivity must maintain good growth.” A lack of job expansion could quickly evolve into an economic recession.