Is the Fed Listening to All the Data?

The Beige Book, plus the bulk of last week’s economic data, should convince the Fed that they must cut key interest rates when they meet next week.

Signage for a job fair is seen on 5th Avenue after the release of the jobs report in Manhattan, New York City, U.S., September 3, 2021. REUTERS/Andrew Kelly/File Photo

Commentary

Last Friday, the S&P 500 topped 6,000 for the first time since last February, celebrating the fact that the Labor Department reported that 139,000 payroll jobs were created in May. However, as often happens, the previous (March and April) payrolls were revised down by a total of 95,000 jobs (down to 120,000 from 185,000 first reported in March, and down to 147,000 from 177,000 in April). Also, the number of federal workers declined by 22,000 in May and by a total of 59,000 since January, due to the DOGE cuts.