Wisdom-Seeker

Brace Yourself For the Payrolls Number

Excellent article. But this time around, the linkage between payrolls and USD could be weakened, because the Fed has already cut interest rates further and faster than in the past. The employment data therefore has less leverage over the future path of interest rates. The Fed cannot ease much further, and Bernanke's testimony yesterday pointed to lower growth, higher unemployment, and more firmness on interest rates due to the inflation / dollar collapse concerns...