April’s jobs report is another economic indicator that the Federal Reserve and Wall Street alike are watching closely. It shows how the economy is growing and how inflation is trending, but is there anything new in this month’s report?
The U.S. Bureau of Labor Statistics reported that 175,000 jobs were added to the U.S. economy, lower than the expected 240,000.
Phil Orlando, chief equity strategist at Federated Hermes, joins us. wealth! Provides insight into the correlation between April jobs report results and how the Fed views inflation, as well as what investors need to know about the potential impact on markets (^DJI, ^IXIC, ^GSPC).
In response to a question about the possibility of new trends emerging in the market, Orlando answered: “One month of unusual data is temporary, two months is a fluke, but three months in a row is probably right.” Saw this week in connection with this morning’s report If you look at the other data, the ADP private payrolls numbers we saw earlier in the week, that’s what the Fed is looking at. The weekly number of new jobless claims confirmed yesterday was very strong, suggesting very strong growth in the labor market. ”
He continued: “So the Fed looked at this morning’s report and said, ‘Hey, this is great news, but which report is correct? This morning’s jobs report or the ADP report? Or is it an employment cost index? Or is it a unit labor cost? Simply put, the appropriate action for the Federal Reserve to take is literally: That means there aren’t any.”
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This post was written by Nicholas Jacobino
