The data Warsh wanted is here
U.S. nonfarm payrolls data released at 9:30 tonight showed a result that was both unexpected and, in hindsight, perfectly logical.
First, the unemployment rate fell from its long-standing 4.2% to 4.1%.
At the same time, the number of new jobs added was over 100,000 higher than in September.
A total of 165,000 new jobs were added. As I recall, during Biden’s and Trump’s first presidencies, employment growth was consistently around this level.
An increase in employment means greater consumer spending power, which in turn means inflation won’t be brought under control.
It could even reach twice the Fed’s target. The Fed’s long-standing inflation target is 2%.
So when inflation keeps staying high and the labor market remains very strong,
it gives the Fed even more reason to raise interest rates, and to do so faster.
All in all, folks, the big one really is coming this time.
U.S. nonfarm payrolls data released at 9:30 tonight showed a result that was both unexpected and, in hindsight, perfectly logical.
First, the unemployment rate fell from its long-standing 4.2% to 4.1%.
At the same time, the number of new jobs added was over 100,000 higher than in September.
A total of 165,000 new jobs were added. As I recall, during Biden’s and Trump’s first presidencies, employment growth was consistently around this level.
An increase in employment means greater consumer spending power, which in turn means inflation won’t be brought under control.
It could even reach twice the Fed’s target. The Fed’s long-standing inflation target is 2%.
So when inflation keeps staying high and the labor market remains very strong,
it gives the Fed even more reason to raise interest rates, and to do so faster.
All in all, folks, the big one really is coming this time.
