Jobs report shock: American economy added a stunning 336,000 jobs in September Good news is the economy isn't tanking. Bad news is the Fed is likely to continue it's reign of terror.
Can you imagine what it would be like if Trump were president right now? We’ve got the FEd, led by a Holdover appointee for the last admin, saying higher unemployment is needed and they might need to cause a recession in 2024, an election year, to slow things down…. Basically, punishing the economy for being too resilient. Trump would be tweeting about firing Powell everyday, if he hadn’t fired him already. I credit Biden for staying quiet and letting the Fed be independent.
No. This is the initial number. Revisions may occur later as they often do. Sometimes down. Sometimes up. Here's 2021 as an example:
At the risk of being accused of having TDS and letting Trump live rent-free in my brain, Orange Man actually tried to bully the Fed and his pressure could have been a factor in the rise in inflation that occurred two years later. Trump heaps pressure on Fed and its chairman Powell to cut rates Trump shoves the Fed into new territory The difference between Jimmy Carter and 95% of the current crop of politicians is that Carter did what he knew was right even though he also knew it would probably cost him the election. He appointed Paul Volcker to chair the Fed knowing that Volcker would raise interest rates to squeeze inflation out of the economy and remained silent while Volcker was raising rates. Almost the exact opposite of Trump.
That's why Jimmy Carter was a bad president. Not only did he do stupid things as you lay out here like letting Volker do some shock doctrine without interference, he actively helped Reagan win and destroy this country by doing it. IF Biden wants to repeat that mistake he will be remembered similarly if Trump wins after the Fed triggers a recession.
really good analysis. This is a great example of how politicians can do something with an immediate positive result, but a few years later a much much worse impact. Maga can’t see this. And yes, we all should be worried about inmate number P01135809 as he currently has the best odds to b3 potus again and he is an awful leader. (There are better repub choices)
And with Trump is was even more ridiculous because he was claiming we had “the greatest economy in the history of mankind” in one post, then demanding the Fed cut rates in the next post. And if you remember, Powell actually did start to cut rates — 3 times, iirc — after Trump’s demands, even before Covid… which makes me question how politically motivated Powell really is.
The initial reaction from the red-hot jobs number was down. With that you might think more rate hikes. Which would be “good news is bad news” for stocks when it comes to jobs numbers vs stocks. But while the top line number was a big beat in jobs filled, the wage data wasn’t too crazy. So perhaps “the market” started thinking it’s not necessarily indicative of more rate hikes? So maybe good news is just good news.
People taking part-time jobs because they can’t pay their bills. All while the wealth gap grows wider and wider.
Reagan's victory was a likely but unintended consequence of the Volcker appointment. It was still the correct decision by Carter. Although the economy was probably the driving force behind Reagan's victory the Iran hostage crisis which was probably before your time was also a significant factor. Whether or not is was his fault Carter received the blame for the humiliating images of the 52 Americans being held hostage by the Iranian Islamic regime.
