- The headline 151K jobs gained number was soft, says Mohamed El-Erian, but fast wage growth, higher hours worked, stronger labor force participation, and falling unemployment rate all point to plenty of labor market momentum.
- At this point, one could make the argument that not hiking in March means the Fed is more concerned with the S&P 500 than economic fundamentals, says El-Erian.
- Markets today (S&P 500 -1.5%) may be reacting to the reality that interest rates are going to have to continue to go higher - possibly as soon as March.