256K jobs were added in Dec. More than expected. Unemployment fell back to 4.1% (from 4.2%) which is higher than the lows of less than 4% earlier this year.
Wage growth slowed and was 0.3% in Nov and has been 3.9% from Nov to Nov (higher than the 2.7% inflation).
Stock markets consider the jobs report too "strong" and fell.
good for workers = bad for companies/stock holders
https://apnews.com/article/jobs-unemplo ... 2854f6309b
On another front, over 9 million people got a pay raise on Jan. 1 due to states and local governments increases in minimum wage.
https://www.npr.org/2025/01/01/nx-s1-52 ... rease-2025
US economy (Feb. 2025: Unemployment ticks up to 4.1)
It never makes sense. A strong jobs report (and lowering wage pressure) shows the economy is stronger than thought … so Government policy promoting job growth is less likely and stocks fall as a reaction. But the economy is already stronger than expected so why does a potential lack of future Government support matter more than proof today.Renegade7 wrote: Sat Jan 11, 2025 12:29 pmI'm still getting used to the notion in economics that even good news can be bad news.
Buts it's the economy, stupid. Let's never forget that golden rule in politics again, please.
Unexpected positive news being treated as bad news.
U.S. Hiring Slowed in January
January’s job gains were fewer than expected.
The pace of hiring slowed slightly in January, signaling more subdued employment growth even as joblessness remained low.
A total of 143,000 jobs were added, a showing that fell short of forecasts, the Labor Department reported on Friday. The unemployment rate edged down to 4 percent.
In addition, annual revisions created a picture of a slower-moving labor market in 2024 than had previously been estimated.
The fresh numbers suggest that the labor market may be losing momentum heading into the second administration of President Trump, whose policy agenda — including sharp cuts to federal payrolls and large-scale deportations of unauthorized migrants — could affect both employment and the availability of workers.
Click on the link for the full article
January’s job gains were fewer than expected.
The pace of hiring slowed slightly in January, signaling more subdued employment growth even as joblessness remained low.
A total of 143,000 jobs were added, a showing that fell short of forecasts, the Labor Department reported on Friday. The unemployment rate edged down to 4 percent.
In addition, annual revisions created a picture of a slower-moving labor market in 2024 than had previously been estimated.
The fresh numbers suggest that the labor market may be losing momentum heading into the second administration of President Trump, whose policy agenda — including sharp cuts to federal payrolls and large-scale deportations of unauthorized migrants — could affect both employment and the availability of workers.
Click on the link for the full article
Mortgages won’t be available in some areas, Fed chair warns
Federal Reserve Chair Jerome Powell testified before the Senate Banking Committee on Tuesday, mostly about interest rates, which he normally discusses. However, during the question and answer period, Sen. Tina Smith (D-Minnesota) asked about the availability of mortgages in disaster-prone states like California.
Here’s what Powell had to say:
“Those banks and insurance companies are pulling out of areas, coastal areas and … areas where there are a lot of fires,” Powell told the committee. “So what that’s going to mean is if you fast-forward 10 or 15 years, there are going to be regions of the country where you can’t get a mortgage. There won’t be ATMs, the banks won’t have branches and things like that.”
Let’s chew on that. The Fed chair is observing that insurance is becoming increasingly difficult to get in states like California, and he says in about a decade from now, you might not be able to get a mortgage in some areas. That’s simply mind-blowing, and he’s not wrong.
Click on the link for the full article
Federal Reserve Chair Jerome Powell testified before the Senate Banking Committee on Tuesday, mostly about interest rates, which he normally discusses. However, during the question and answer period, Sen. Tina Smith (D-Minnesota) asked about the availability of mortgages in disaster-prone states like California.
Here’s what Powell had to say:
“Those banks and insurance companies are pulling out of areas, coastal areas and … areas where there are a lot of fires,” Powell told the committee. “So what that’s going to mean is if you fast-forward 10 or 15 years, there are going to be regions of the country where you can’t get a mortgage. There won’t be ATMs, the banks won’t have branches and things like that.”
Let’s chew on that. The Fed chair is observing that insurance is becoming increasingly difficult to get in states like California, and he says in about a decade from now, you might not be able to get a mortgage in some areas. That’s simply mind-blowing, and he’s not wrong.
Click on the link for the full article
Inflation Rises Unexpectedly, Complicating Picture for the Fed
U.S. inflation rose to 3 percent in January, strengthening the case for the Federal Reserve to extend a pause on interest rate cuts.
The Consumer Price Index jumped more than expected, data from the Bureau of Labor Statistics showed on Wednesday, rising 0.5 percent from December in what was the fastest monthly increase since August 2023. Last month, the annual pace was 2.9 percent.
“Core” C.P.I., which more closely reflects underlying inflation by removing volatile food and energy prices, also showed little improvement. It rose 0.4 percent from December or 3.3 percent on a year-over-year basis, both higher than economists expected. The monthly increase in core prices was the highest since April 2023.
The January data underscored the uneven nature of the central bank’s battle against high prices. Inflation has subsided drastically since cresting just above 9 percent in 2022, but progress in recent months has been much more sporadic.
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, described the latest inflation report as “sobering.”
Click on the link for the full article
U.S. inflation rose to 3 percent in January, strengthening the case for the Federal Reserve to extend a pause on interest rate cuts.
The Consumer Price Index jumped more than expected, data from the Bureau of Labor Statistics showed on Wednesday, rising 0.5 percent from December in what was the fastest monthly increase since August 2023. Last month, the annual pace was 2.9 percent.
“Core” C.P.I., which more closely reflects underlying inflation by removing volatile food and energy prices, also showed little improvement. It rose 0.4 percent from December or 3.3 percent on a year-over-year basis, both higher than economists expected. The monthly increase in core prices was the highest since April 2023.
The January data underscored the uneven nature of the central bank’s battle against high prices. Inflation has subsided drastically since cresting just above 9 percent in 2022, but progress in recent months has been much more sporadic.
Austan Goolsbee, president of the Federal Reserve Bank of Chicago, described the latest inflation report as “sobering.”
Click on the link for the full article
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