The real inflation that everyone’s been yelling about has finally impacted a closely-watched economic indicator: CPI. With the Fed right again and again, why should we doubt their belief that such inflation will be transitory?
Friday’s jobs report, or lack thereof, was a surprise to everyone. Many could’ve predicted a bad number, but not by nearly 900,000 jobs. Yes, when you combine April’s whiff and March’s revision, Friday’s Nonfarm Payroll report was the largest miss in history, by 858,000 jobs.
The strong start to the month should come as no surprise as February, March, and April each started out with gains of 1.6%, 2.3%, and 1.1%, respectively, after soft finishes on the last day of the prior month.
U.S. benchmarks were little changed ahead of the bell, but the S&P set a fresh record high overnight. Today unfolds into tomorrow’s Federal Reserve policy decision with a deluge of earnings and a busy economic calendar.