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Short-Term Implications of the Jobs Report
The weaker-than-expected U.S. jobs report for August should not materially change expectations for the economy, which remains, for now, stuck in a “new normal” low-growth equilibrium. The data released Friday will amplify expectations of a Federal Reserve that remains looser for even longer, placing downward pressures on market interest rates and the dollar, but that also will have to compete with the latest news from the European Central Bank. And, within the Fed, it amplifies the tug of war between those who are worried about lowflation and those concerned about the risk of future financial instability. Job ... (full story)