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re: April jobs number 175k, well below 240k estimates. Markets rally

Posted on 5/3/24 at 8:57 am to
Posted by Maderan
Member since Feb 2005
808 posts
Posted on 5/3/24 at 8:57 am to
I think that you underestimate the length of time it takes for interest rate changes to have an effect on the economy. They need to start cutting 4-6 months before we hit their target numbers or we swing too far the opposite way economically.

They have been waiting on the labor market to move down. One more month of this and start cutting.

Posted by slackster
Houston
Member since Mar 2009
85332 posts
Posted on 5/3/24 at 9:14 am to
quote:

think that you underestimate the length of time it takes for interest rate changes to have an effect on the economy. They need to start cutting 4-6 months before we hit their target numbers or we swing too far the opposite way economically. They have been waiting on the labor market to move down. One more month of this and start cutting.


That’s why I laughed at waiting until 5% unemployment. By then the pendulum is going the wrong way with momentum.
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