Tuesday, October 10, 2006

Jobs, Jobs, and more Jobs!

The market sold off hard on Friday and is following through today, in large part on news that the Department of Labor is revising their estimation of job creation from March 2005-March 2006 upward by 810,000.

Last week I said that I didn't think jobs was the key to what the Fed did next. I still think that, but I think this new revelation from Labor has caused many marketeers who did think jobs was a key to come over to my way of thinking. In fact, Yellen of the San Francisco Fed described the labor market as modestly tight. So aside from housing, it appears the set of arguments for a near-term cut are dissipating.

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