Surprising jobs momentum raises hopes for Fed pause and economic 'soft landing'

[mystery-ak]

Surprising jobs momentum raises hopes for Fed pause and economic 'soft landing'
by Zachary Halaschak, Economics Reporter |
May 06, 2023 04:00 AM

The strong job growth in April suggests a higher probability that inflation can be brought down without a recession.

Friday's employment report for April showed job gains strong but slowing — an ideal outcome for the Federal Reserve, which is looking for signs that the labor market is not so hot that it is adding to inflation but, at the same time, does not want outright job losses. In other words, the report raised the possibility of an economic "soft landing," or one in which inflation is brought down without a recession.

Bond market data following the release of the report Friday indicate investors expect the central bank not to raise interest rates again, even though the jobs report exceeded forecasters' expectations.

Even right after the strong report, investors assigned about a 92% chance that the Fed will not hike rates at its next meeting in June, according to CME Group’s FedWatch tool, which calculates the probability using futures contract prices for rates in the short-term market targeted by the Fed.

Investors foresee the Fed cutting rates in subsequent months, reflecting fears of a downturn.

PNC chief economist Gus Faucher said after the new numbers came out that, while his firm still expects a mild recession, “this job report is consistent with a soft landing, in which the economy slows and the labor market cools off to a more sustainable pace, but without a recession.”

Employment growth has slowed but stayed positive even as inflation has slowed.

more
https://www.washingtonexaminer.com/policy/economy/fed-expected-pause-rate-hikes-despite-jobs-strong-report

[LMAO]

There are a lot of Help Wanted signs in my neck of the woods

[Hoodat]

The chart accompanying this article shows a significant drop in new jobs - a 25% decline over the previous month.  This is not a reason for hope.  Not to mention that all these new job openings are at the low end while middle class job positions continue to decline.

[GtHawk]

The chart accompanying this article shows a significant drop in new jobs - a 25% decline over the previous month.  This is not a reason for hope.  Not to mention that all these new job openings are at the low end while middle class job positions continue to decline.

Even the low end jobs will decline, even more, as the the push of increasing wages forces the number of family and other's visits to fast food for meals down to to increased costs and also cuts the number of positions a location will maintain especially as it forces human positions out in favor of order kiosks and mechanized food handling. I am curious how they are crunching numbers, are they including all the ignorant non skilled 'migrants' the democrats have flooding across the border?