Unemployment tumbled to 3.5%, which means the Fed has more work to do. What sort of work does the Fed have to do? They need to fulfill their mandate of totally destroying the economy.
Jefferies:
“To the extent that there are any implications for the Fed, the data brings us back to where we were before last month. There is not a lot of capacity for the labor force to grow, and thus strong wage pressure is going to continue to be an issue. We still expect another 75-bp rate hike in November.”
First thing I did this morning was liquidate my entire TNA position, keeping my short Euro and short bond position intact and then I bought NRGD to bet against crude — soon after booking a 3.3% gain.
For the session I am +15bps.
Do we buy this dip, on a Friday?
No.
The economy is too damned strong and the self inflicted “good inflation” the Fed had targeted back in 2020 is now a malignant problem that needs to be reigned in. The only way we do that is by hiking rates to match inflation.
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“The only way we do that is by hiking rates to match inflation.”
Indeud. It’s what Peter Schiff has been screaming.
They will make sure the data shows whatever is needed to “justify” more rate increases. If the true jobs report came out weak, they would doctor it because they want to continue to raise rates. The game is rigged…in one direction….for now.
key phrase: for now
Their jawboning means absolutely nothing.
When the time comes, they will reverse the increases and go brrrrrr in a heartbeat.
WH press secretary, minnie mouse will mickey mouse the numbers or peewee herman the numbers if need be.
In real news: “The entire goal of modern European history has been preventing Germany and Russia from joining forces. The manufacturing prowess of the Germans combined with cheap Russian commodities could be a game-changing force from a geopolitical point of view.”
AH paraphrasing Felix Z
I bought it. Labu. Tht sucker never stays down long.