Jobs numbers came out Friday better than expected.
According to the Labor Department, the US economy added 313,000 jobs last month, the most since October 2015. Economists had anticipated a gain of about 200,000. Wage growth was less stellar, ticking up just 0.1%. Analysts projected a 0.2% increase after a pretty significant jump of 0.3% in January spooked markets with inflation fears.
In his latest podcast, Peter Schiff said if he was a conspiratorial person – and he’s not – he would say, “Wait a minute, this looks too good to be true.”
President Trump has completely flip-flopped the way he looks at economic data. When he was on the campaign trail, he called the stock market a “big, fat, ugly bubble.” Now that he’s sitting in the Oval Office, he takes credit for the same bubble.
He’s done the same kind of 180 when it comes to employment data. On the campaign trail, he called 5% unemployment “the biggest hoax in American history.” But when the jobs report came out last week, Trump eagerly tweeted, “The unemployment rate remains at a 17-year low of 4.1%. The unemployment rate in manufacturing dropped to 2.6%, the lowest ever recorded. The unemployment rate among Hispanics dropped to 4.7%, the lowest ever recorded…”
Peter Schiff called Trump out on his flip-flop in his most recent podcast.
As we pointed out last week, the Federal Reserve finds itself stuck between a rock and a hard place. Well, data released last Friday made that squeeze even tighter.
Weak employment and wages have many analysts backing off expectations for aggressive action by the Federal Reserve this year. The Fed has been talking up the economy for months to justify interest rate normalization. But the actual data tells a different story. As Peter Schiff put it in his newest podcast, the most recent weak data further undermines the Fed’s credibility.
Have you noticed it’s always the weather?
Tucked away in virtually every story reporting negative economic news, you will find some reference to the weather. It was too hot. It was too cold. It was too wet. It was too dry. To hear the mainstream media tell it, Mother Nature is the single most important driver of the US economy.