Attention Economy


Friday, September 6, 2024

Jobs Report and Fed Rate Cut Prospects

BLS Jobs Report:
https://www.bls.gov/news.release/pdf/empsit.pdf
 
Employers Added 142,000 Jobs, Missing Expectations, Though Unemployment Ticked Down
https://www.wsj.com/economy/jobs/jobs-report-august-unemployment-economy-b869cf39
 
Fed Governor Waller:
https://www.federalreserve.gov/newsevents/speech/waller20240906a.htm
Today's jobs report continues the longer-term pattern of a softening of the labor market that is consistent with moderate growth in economic activity, the details of which I will get into in a moment. As I said at the outset, considering the progress we have made on getting inflation back to target, I believe that the balance of risks is now weighted more toward downside risks to the FOMC's maximum-employment mandate.
While the labor market has clearly cooled, based on the evidence I see, I do not believe the economy is in a recession or necessarily headed for one soon. The collective set of economic data indicates to me that the labor market and the economy are performing in a solid manner and the prospects for continued growth and job creation are good, with inflation near 2 percent. I continue to believe that this can occur without substantial harm to the labor market. But I also believe that maintaining the economy's forward momentum means that, as Chair Powell said recently, the time has come to begin reducing the target range for the federal funds rate.