Strong U.S. jobs growth expected in May

• With trade war drums beating loudly, a strong employment report from the Labor Department this morning will probably do little to dial back market expectations that the Fed will cut interest rates this year.
• Nonfarm payrolls probably increased by 185,000 jobs last month after surging 263,000 in April, a figure that's well above the roughly 100,000 needed per month to keep up with growth in the working-age population.
• Average hourly earnings are forecast to have increased 0.3% after rising 0.2% in April, while the unemployment rate is expected to have remained near a 50-year low of 3.6%.

Comments

[David Haggith]

Oops.

[ROLLINGMEADOW]

How can they be so wrong ? Experts my ass.

[Samwisecorey]

Employment is a mostly useless statistic.

[Bankfurt]

I bet the UBI mob finds it unfair.

[Ben Gee]

A job is better than no job.

[Dtip]

I have always wondered if the people that sit on these Fed Boards have ever had a job in an actual business that had to meet payroll, pay bills and actually market a product or service. The macro-economic view of the Fed is designed to help large corporations but do they not realize small business is what makes America run. I know this is a stock trading site, with a focus on large publicly owned corp. but let's get some people on the Fed that have an understanding of real world economics.

[redarrow5150]

So in other words you don't know but choose to bash?

[Dtip]

You're correct- Let me rephrase

No one on any of the Fed Boards has ever had to run an actual business that had to meet payroll, pay bills and actually market a product or service - better??

I am wondering if you think just because a person went to college, has done or is currently doing a job, does that make that person qualified for that job? I built houses during high school and college but I don't think you want me to build you a house. Try and focus on the point I was making no one was bashing anyone.

[redarrow5150]

So you've done the research and found out no one on the Fed ever ran a business? Your point and focus makes no sense that just because someone hasn't run a business they don't know what there doing. Theo Epstein never played baseball nor was a GM before his job with the Red Sox and yet he built a World Series Championship team in Boston.

[stephenmcmahon83]

"....market expectations that the Fed will cut interest rates this year."
"....while the unemployment rate is expected to have remained near a 50-year low of 3.6%."

Socialism for speculators. Nothing more.

[Fast Buck]

These people that are pushing a rate cut are getting paid. We won't get one and don't need one. The jobs report is a straw-man. Its going to be low and they know it. New jobs are not needed. We have full employment. New jobs isn't good news. FLAT IS WHERE ITS AT!

[ckarabin]

There is a market rate that the Fed has to achieve with its Fed funds rate and that's to match the 2 yr treasury note. When Fed funds gets too far above that, then it has a braking effect on the economy. The correlation is very clear in history. Right now isn't the 2 yr down around 1.8% and fed funds is 2.25-2.50%? So we're 1/2 to 3/4 too tight right now. With unemployment so low that might be considered appropriate policy to slow things down. But the precursors to inflation such as unit labor costs do not at al suggest we have to be slowing down yet. And higher wages are a good thing, especially if productivity stays at a rising rate. Interest rates are too high right now, should come down 1/4-1/2 point based on the 2 yr note and inflation outlook