Unemployment drops again, 2x more new jobs v expected

It's a case of good news being bad news and bad news being good news. Futures are plummeting based on the expectation that the Fed will likely raise interest rates again.

 

That’s kind of funny.

Not the first time the market reacts in the opposite direction (good news is bad, bad news is good). I assume the thinking is the strong job members means inflation might still be running hot, and thus it moves the needle on (more) rate hikes.

 

The Fed is like "what do we have to do to get our recession"

 

Wage inflation will continue to be a problem for businesses

 

Just another Freaky Friday where good news is bad news.

 

Good employment report. The labor participation is still down from January 2020 and black unemployment is up, but good report overall.

We can't have this almost employment recovery back to pre-pandemic levels. Let's pass a law that increases guvment spending and raises taxes on the people we promised not to raise taxes on. We can clamp small business employment hiring, which is the backbone of American hiring, increase inflation to higher levels, increase the federal deficit even more while we call it the deficit reduction act, and give the federal reserve more shade to run up interest rates like we had in the late 70s and early 80s. Fun times for sure. I remember them. How about you?

Buckle up, we are going to have bumpy times ahead for the next few years as the fiscal policy of the guvment is stepping in to hinder the federal reserve fight against inflation, kill employment growth, and to continue the pain for the American people. Just when you think the Biden Administration has done its worst, they do something else to kill that notion.

 

The folks at Fox Business seemed to have missed the mark of only 100 jobs.



Can someone please stop that mad man Biden? Just this past week under Biden gas prices keep dropping, veterans bill was passed, and he’s on the verge of passing the inflation reduction act that reduces pollution, caps the prices of meds and negotiates the cost of drugs, expands health care, and closes loopholes that allows billionaires and multibillion dollar companies to not have to pay any taxes. All that woke stuff is destroying America!

 

No problem, Bidenflation and Bidentaxation is going to rob American workers of any real wage growth.

Once small businesses taxes go up in January, they'll have less to pay in wages and will likely lay off workers to boot. Oh, and we get higher inflation too when small business tries to keep up.

Let's not forget the 15% minimum corporate tax. Of course, that is just more inflation for the people as the corporations will simply pass-through higher prices in goods and services to us.

 

That's the product of all you support. Matters not what I want.

The No Deficit Reduction Act is going to do this on a smaller scale on top of what the $1.9 trillion from last year has done to us to date. Of course, we won't see it until 2023 when the fiasco takes effect. By then, it will be too late to stop the increased inflation, higher interest rates, and reduced hiring that will unfold over the year. It's as predictible as rain.

Jerome Powell is probably thinking, "do I have to hit the Biden Administration over the head with a Louisville Slugger?"

 

In short what we’re hearing/reading you say is…

 

they don't have to do much more monetarily. just like with gasoline, the solution to high prices is high prices. demand has to wane or supply has to catch up. higher prices suppresses demand, open the logistics (ports) bottlenecks and supply will increase. this inflation seems to be 100% supply side driven primarily by refinery capacity and shipping logistics. There is a piece of it driven by higher nat gas prices as we export more LNG. That drives up electricity and other things made from the nat gas feedstock. No rate hike is going to suppress that

 

hmm, the carried interest change is a very modest narrowing of the loophole, by no means is it closing. one of the great disappointments in this bill is their inability to target the carried interest benefits of fund managers. and not all carried interests are the same, as noted by others.