November 1, 2022
This will be another interesting week for the markets. The Fed starts their meeting as we publish this newsletter. All month long we have been subject to incendiary rhetoric from the members of the Fed indicating that they will not rest in their fight to subdue inflation. In other words, short-term rates are going up again at this meeting. The only question is – how much? Another .75% would not surprise the markets and anything less could be seen as the first step towards easing off the pedal.
And if the meeting of the Fed is not enough, we have the all-important jobs report to be released on Friday. What the Fed would like to see is fewer than 200,000 jobs created – with lower wage growth. The jobs machine has been cranking out millions of jobs this year and wages have been soaring. These are key ingredients contributing to the rise of inflation. Thus, we need to see fewer jobs with lower pay to convince the Fed that they can back off a bit.
Here are the questions we would like to ask. How can we root for the economy to produce less jobs? And for that matter, how can we root for less raises for our workers? When did bad news become good news for the economy? Since the pandemic hit, this has been a topsy-turvy economy and it appears the strangeness will continue. One more message—don’t forget to vote next week!
Source: Origination Pro
Call us now for your mortgage needs…