Fight against inflation could result in 1.2 million becoming unemployed (CNN)

Around 1.2 million people will become unemployed amid the Federal Reserve’s efforts to raise interest rates and tackle inflation, CNN reported. The estimate is based on Fed projections that the US unemployment rate could grow to 4.4% next year, up from 3.7% in August. “We have now an implicit realization that in order to cool the labor market there will need to be a significant increase in the unemployment rate and there will need to be a cooling of employment growth with potential employment losses,” Gregory Daco, chief economist at EY-Parthenon, told CNN.