Soft Job Market Seen Postponing Fed Hike

[Pale Blue Dot]

http://www.reuters.com/newsArticle.jhtml?type=reutersEdge&storyID=4302869">Reuters

The odds of the Federal Reserve increasing short-term U.S. interest rates this summer lengthened on Friday after the all-important monthly payrolls report disappointed for the third month in a row.

Futures markets pared expectations of a rate hike at the Fed's policy meeting in June after the government reported a weaker-than-forecast 112,000 jobs were created in January, and economists speculated that job growth was unlikely to be impressive enough in coming months to justify a rate hike.

The key concern is that although the U.S. economy is growing rapidly, companies are still proving reluctant to hire, which will eventually depress consumer spending. This could slow the overall economy and force the Fed to keep rates down even longer to spur growth through cheap credit.

I swear to God this market will pull "good" news out of it's ass if it has to.

[JCMach1]

1. The economy isn't growing

the GDP numbers are completely bogus...

[ProfessorGAC]

2. As Usual, You're Right JC

In an earlier thread in GD, i went over some of the specifics. The numbers being reported are so transient, that any attempt to annualize them is either the product of total stupidity or obfuscation.
The Professor