Was Friday's April jobs number good enough to get the Federal Reserve to start normalizing interest rates soon?
Based on the reaction of both the stock and bond markets, the answer is no. The increase was likely way too small to convince the data-paralyzed Fed that the economy has recovered enough to let it stand on its own feet. The sharp downward revision in the already lousy March figure only added to the case.
The jobs report – nonfarm payrolls rose 223,000 in April – was a lot better than March's report – which isn't saying a whole lot – but certainly not strong enough to worry investors that the Fed might see a reason to raise interest rates sooner than most now expect, which is either late this year or early 2016. Continue reading "Continued Weak Jobs Numbers Allow the Fed to Sit Tight"