If Powell is looking for cover to cut rates he got it from the jobs number. The headline of 175k jobs created was actually worse due to a statistical adjustment, and jobs would have been negative without it. This added a second potential rate cut to the mix this year even though financial conditions are still extremely loose and inflation is sticky. The bulls got what they needed last week—slightly dovish Powell, decent earnings, and weak jobs. I still believe that the economy is much weaker than the numbers are showing and the possibility of stagflation is real.
Financial News vs. Noise
Financial News vs. Noise
Financial News vs. Noise
If Powell is looking for cover to cut rates he got it from the jobs number. The headline of 175k jobs created was actually worse due to a statistical adjustment, and jobs would have been negative without it. This added a second potential rate cut to the mix this year even though financial conditions are still extremely loose and inflation is sticky. The bulls got what they needed last week—slightly dovish Powell, decent earnings, and weak jobs. I still believe that the economy is much weaker than the numbers are showing and the possibility of stagflation is real.