Analysis: Here's why this jobs report is going to cost you
From CNN's David GoldmanThe US economy feels lousy for many people. A majority of Americans say President Joe Biden’s policies have made economic conditions worse, according to a CNN Poll conducted by SSRS.
So you'd think some really, really, shockingly good news about the job market would give Americans' spirits a boost.
It won't. Here's why: Inflation is still biting. Prices continue to rise faster than anyone would like. Although annual price increases aren't in wild-runaway mode like they were when inflation was above 9% last year, inflation is still above 3%, which is higher than economists say is healthy.
When you see gas prices at $3.75 on average (and above $4 in plenty of places across the country), mortgage rates above 7% and at a 23-year high, food prices going up at the grocery store, and a restart to student loan payments for millions of Americans, a robust job market won't make most people feel like the economy is strong.
In fact, a strong jobs market may ultimately make many Americans feel worse. How? The Federal Reserve is working to slow the economy by hiking interest rates — the only tool it has to fight inflation. A still-robust job market means the central bank could continue to increase rates without fear of sending the economy into a recession.
JPMorgan CEO Jamie Dimon repeated in recent weeks his fear that rates could go to 7%. Government bond yields are rising to multi-year highs in expectation that rates could go up — and loans pinned to those yields, including mortgages and credit card rates — are set to go up, too.
We should never cheer a bad job market. But a job market that has remained this healthy for this long really isn't excellent news for average Americans struggling to pay their bills. Meanwhile, we remain in a "good news is bad news" conundrum that makes most people feel like the US economy is in a bad spot.
I'm sure it will be revised down almost half like the last one but this is not really good news.
Sadly the fed and the stock market will take what amounts to fake news figures and determine policy/strategies on them.
Oh well.
MOD EDIT to add link: Redirect Notice
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