7.0% unemployment makes tapering in December more likely

Today’s commentary
Today is the day when the much anticipated jobs report was released. And the data were good. The jobs report was not the big news in my view, however, because at the same time we saw the jobs numbers we also got personal income numbers - and they were weak. These numbers point to why the economy is not growing more quickly. yet the Fed nears its 6.5% threshold. Below I have some thoughts.
Let’s start with the jobs numbers. The headline figure was the 7.0% unemployment number. That was a big jump down from the prior month’s 7.3% and puts the unemployment number within clear reach of the 6.5% unemployment threshold the Fed has set for hiking rates. Below I want to go into why these numbers are not so great. But before I do, I think it bears mentioning that this is exactl...

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