04-05-2024, 06:47 PM
Yahoo finance:
How could this happen in the midst of the disastrous Biden economy?
Americans ain’t suddenly popping out new workers. Where oh where could they be coming from?
Huh. Imagine that.
Also,
And yet, inflation-adjusted wages continue to increase, especially at the low end, while productivity grows.
Imagine if the Fed weren’t actively trying to strangle the economy because core PCE is 2.8% rather than 2.0%. If only housing costs, highly dependent on the Fed Funds rate, and 2/3rds responsible for the latest entire headline CPI increase, would come down. But no decrease in this historically high Fed funds rate until housing costs (and core PCE) gets down to our 2%, dammit! (And furthermore, beatings will continue until morale improves).
Could be awhile.
The economy added 303,000 jobs during the month, nearly 100,000 more than consensus expectations. The unemployment rate fell to 3.8%, hovering near a historically low level, while the percentage of Americans participating in the workforce increased.
… "The data leaves us borderline speechless," Jefferies US economist Tom Simons wrote in a note to clients on Friday. "We were optimistic about the payroll numbers coming into today based on recent trends in jobless claims…but we did not expect to see such strong data around the periphery and within the details."
How could this happen in the midst of the disastrous Biden economy?
A key factor in the robust economy has been a rise in the US population, and subsequently, an increase of available workers…
Americans ain’t suddenly popping out new workers. Where oh where could they be coming from?
BlackRock chief investment officer of global fixed income Rick Rieder reasoned the "positive" supply shock from increased immigration is helping create the current "pro-growth" yet disinflationary labor market dynamics.
Huh. Imagine that.
Also,
This came as wage growth, a potential indicator of future inflationary pressures, decreased to 4.1%, its lowest level since June 2021.
This exemplifies an ideal scenario for the labor market, where job growth continues but not at the cost of higher inflation.
And yet, inflation-adjusted wages continue to increase, especially at the low end, while productivity grows.
Imagine if the Fed weren’t actively trying to strangle the economy because core PCE is 2.8% rather than 2.0%. If only housing costs, highly dependent on the Fed Funds rate, and 2/3rds responsible for the latest entire headline CPI increase, would come down. But no decrease in this historically high Fed funds rate until housing costs (and core PCE) gets down to our 2%, dammit! (And furthermore, beatings will continue until morale improves).
Could be awhile.
