Governor Murphy alerts business executives about persistent inflation and looming economic downturn

During a speech to an economic development group, Gov. Phil Murphy expressed concerns about the national economy. He predicted that inflation and interest rate hikes would increase costs for consumers in the state. Although inflation has decreased in recent months, it remains above the Federal Reserve’s target. The consumer price index for urban wage earners and clerical workers has risen by 3.4% in the last year. Analysts expect the Fed to continue raising interest rates, which could lead to higher unemployment and decreased economic activity nationally. However, Murphy believes that New Jersey may fare slightly better, as state revenue has stayed on target. He acknowledged the potential downside risks, including higher inflation, increased interest rates, and potential negative impacts on unemployment and the general economic outlook.