Ep.92 - The Federal Reserve Hits the Jobs Market Hard: Market Update pt. 2
Is the Federal Reserve after your job?! Today, let’s dissect the reliability of job reports and why the Federal Reserve is struggling to make accurate policy decisions with them. We’ll also explore how inflation drives up prices and what that means for consumers. The conversation then turns to the latest JOLTS report, which reveals a significant drop in job openings due to COVID-19 mass layoffs and increased remote work opportunities. Finally, find out how current trends in the labor market, such as savings rates dropping, duration of unemployment benefits increasing, and people quitting their jobs at record lows, could influence the bond market and Fed policy decisions.
Jump into this high-level look into the market economy and how the Federal Reserve's interest rate policies may shape our mortgage rates and economic future!
[00:01 - 07:12] Exploring and breaking down the latest updates in inflation readings
[07:13 - 12:39] Revisions in jobs reports raise questions about the Federal Reserve’s policy decisions
[12:40 - 20:22] Job market softens, and job openings reach record lows
[20:23 - 25:53] How tightening interest rates could lead to job loss recession
Quotes:
"The reality is inflation, relatively flat headline inflation went up—marginally went from 3 to 3.2 in the month of August. Core inflation came down a little bit, but at this point, I'm of the impression that Inflation is really not going to be the primary driver.” - Daniel Halverson
"The definition of a strong market is a strong labor market. The definition of a softening market is you want to soften the labor force. You want to see job loss, which is what the Federal Reserve has made commentary for multiple times at the podium.” - Quinton Harris
"Let's handle this properly while we don't have a job loss recession. We're getting what we want. Let's keep it that way where we don't have to create massive pain to bring inflation down." - Daniel Halverson
Resources Mentioned:
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