NEW YORK (October 4) — The Bureau of Labor Statistics (BLS) announced a surprising 254,000 new jobs in September, according to the Establishment Survey, a collection of job creation data from businesses. The number
September Jobs Report Shows 50 Bps Rate Cut Was Unnecessary, Stagflation On Tap
Summary
- September saw a surprising 254,000 new jobs, far exceeding the 147,000 estimate, with revisions for July and August adding 72,000 more jobs.
- Despite strong job growth, concerns about stagflation persist due to elevated government spending and a recent 50 bps Fed rate cut, which may fuel inflation.
- The Fed's balance sheet remains excessively large, risking inflation, while geopolitical tensions and reckless fiscal policies threaten long-term economic stability.
- Expect GDP growth to slow, unemployment to rise, and inflation to escalate, reinforcing the outlook for a stagflation cycle with tepid growth and higher unemployment.
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