The major stock market measures all sit near record highs ahead of the opening bell, despite the unexpected loss of 23,000 jobs last month.
So why don’t the markets don’t seem phased? UNO economist Dr. Walter “Dub” Lane says there’s one question investors consider: “How might this effect the Fed?”
Lane says that gives investors a window into what might happen with interest rates.
“The fed’s really worrying about inflation, or thinking about possibly raising interest rates,” Lane explained. “Well, if the economy is looking a little weaker, it makes them reluctant to raise interest rates.”
In fact, he says a lot of recent economic news has been full of contradictions.
“Unemployment actually went down, which sounds good, usually, but that’s concerning, because it went done because a lot of the people who lost jobs just left the labor force,” said Lane, noting that the labor participation rate is at its lowest in 50 years, not counting the COVID pandemic.
