The labor report gives the Fed a clear pathway to land the plane - HousingWire
Briefly

from www.housingwire.com4 weeks ago
The data shows that wage growth is cooling down and the job opening quits rate is below pre-COVID-19 levels. This bodes well for those hoping to see a soft landing, and for those hoping for lower mortgage rates.
www.housingwire.comhttps://www.housingwire.com/articles/the-labor-report-gives-the-fed-a-clear-pathway-to-land-the-plane/
Since 2022, I haven't believed the Fed would pivot until the labor market breaks. Instead, I have focused on jobless claims data. My target has always been the same: jobless claims breaking above 323,000 on the four-week moving average is recessionary.
www.housingwire.comhttps://www.housingwire.com/articles/the-labor-report-gives-the-fed-a-clear-pathway-to-land-the-plane/
We are far from that, and as you can see below, the growth rate of inflation has fallen, but bond yields and mortgage rates are still elevated because the labor market hasn't broken yet.
www.housingwire.comhttps://www.housingwire.com/articles/the-labor-report-gives-the-fed-a-clear-pathway-to-land-the-plane/
Remember, the labor market is getting softer, but it's not breaking. Once it breaks, that will force the Fed to move, and bond yields will have already gone lower.
www.housingwire.comhttps://www.housingwire.com/articles/the-labor-report-gives-the-fed-a-clear-pathway-to-land-the-plane/
Read at www.housingwire.com
#jobs-report #labor-market #federal-reserve #wage-growth #mortgage-rates
[
add
]
[
|
|
]