by Wolf Richter
Wolf Street
The low point was in September, which had spooked the Fed. But that’s over.
The reason we’re looking at the underlying dynamics of the labor market is to gauge the pressure within the Fed to cut interest rates to prevent the labor market from weakening. And in these underlying dynamics, there are no reasons for the Fed to cut interest rates further. The labor market is not weakening, it has been tightening just a little since September. Over the same period, inflation measures have accelerated some. And that combination has caused the Fed to move any rate cuts into the distance, and even Trump suddenly thought that this pivot to wait-and-see “was the right thing to do.”