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The idea they are focused on reducing employment isn't accurate. They have several goals. One is CPI around 2%, another is full employment, another is moderate
by danielmarkbruce 3y ago
The idea they are focused on reducing employment isn't accurate.
They have several goals. One is CPI around 2%, another is full employment, another is moderate long term rates.
CPI is down significantly from peak. It's possible we'll get back to 2-3% without a ding on employment and without more interest rate increases. That's what people are likely cheering.
- pclmulqdq 3y agoI think you may be right on the money. I read Bloomberg most days, and there's a through-line in a lot of their reporting on inflation of a "soft landing" to the inflation problem. What exactly this means seems to vary, although it is intended to mean something along the lines of "inflation goes back down without hurting the rest of the economy" for different ideas about what "hurting the economy" means. The stock market seems to like the idea that we may have a "soft landing" scenario on our hands. Still, you may view this as investor optimism.
- MuffinFlavored 3y ago> CPI is down significantly from peak. But that wasn't the news released on Friday. The S&P popped 1.8% upward in 1 day based on a reaction to the job numbers. if job_numbers == good { do_not_get_back_to_200_bps_federal_funds_rate = true; } if do_not_get_back_to_200_bps_federal_funds_rate { reprice_market_valuations(downward); }
- danielmarkbruce 3y agoHas a bug.