Had a heavy post for today planned …. about a pretty complicated event occurring in the Capital Markets…just moved it to Wednesday with a bit of travels this week and continued Capital Market movement from a Friday Economic report… wanted to move the later to the front today as it is a bit simpler, but super important as well…
Hang on, both posts this week a bit heavy, but will keep today’s short!
Hot Jobs Numbers Puts Pressure on FED, Rates (short end) and Capital Markets
When GOOD news is bad … it happens in this part of the cycle!
On Friday February 3, 2023 the BLS (Bureau of Labor Statistics) released the “Employment Report” for January 2023…. all about expectations versus actual….
Anyone extrapolating that downward sloping chart – Far Right below. would have certainly NOT EXPECTED that huge January 23 bar… anyone would include all of Wall Street and the FOMC – (Very lagging reading, likely revised, BUT much different from expectations)
New Jobs Expected 190k ACTUAL 571K — Ya ya will be revised, but for now is what Wall Street has…
The good news is from this report lots of jobs and more than expected…. Bad News… Fed may continue to be aggressive in slowing the economy… aka Higher short term rates…
Big move in the 2 Year Treasury, one of the most in sync with Fed rate moves…
Ok… all caught up from last week…be sure to have your coffee before reading Wednesday’s post!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth