It may contemplate strong,but retail sales are weak, productivity is destitute, and growth modest and the labour market is hardly racing aheadThe evidence from the world’s biggest economy looks conclusive. Americans filing new jobless claims fell to 255000 final week – the lowest figure since Richard Nixon was president during the final few months of the post-moment world war boom 42 years ago.
Fewer claims for unemployment benefit means the labour market is running hot,which in turn means the economy is overheating, which in turn means the Federal Reserve made a strategic blunder when it confounded Wall Street by declining to raise rates in September. Simple, and right?Continue reading...
Source: theguardian.com