Today’s #employment report was considerably stronger than anticipated, allowing for manufacturing-sector strike activity and with the substantial upward revisions to #job numbers over the past two months. Yet, clearly, employment growth is slowing some.
Still, the demand for #labor exceeds historically moderate levels of new entrants into the workforce, which has helped to bring the #unemployment rate down persistently over the past 10 years, to 3.56% today.
The question now is whether a moderating #employment cycle, alongside of an #economy faced with great uncertainty over the past few months, will see some bottoming and improvement from here, or not?
In that context, the #Fed’s policy stance of achieving the goal of executing a mid-cycle #policy rate adjustment, of providing ample levels of #liquidity and then of remaining highly focused on incoming data to fine tune further moves, is precisely right, in our estimation.
