Yahoo Finance's Rick Newman discusses the September jobs report and why markets are rooting for the labor market to cool in this week's Bidenomics report.
- Welcome back. This week in Bidenomics, Rick Newman is focusing on jobs, specifically unemployment, that rate. Rick, your take on the morning's numbers here. Good to see you.
RICK NEWMAN: I'm just gonna say what everybody's thinking. We need fewer jobs. We need a higher unemployment rate. All the analysis I'm seeing about the September jobs rate says, basically, aw shucks, we thought-- we were hoping unemployment would go up, and we thought the jobs number would be lower.
And why does everybody want that to happen? So the Federal Reserve has a reason to slow down its interest rate hikes. But with 263,000 new jobs-- slower than we've seen earlier this year but still pretty strong, very tight job market-- everybody now is almost certain the Fed's gonna hike another 75 basis points or 3/4 of a point in November.
So, you know, puzzle this one out. We get a pretty good jobs report, and the stock market falls by nearly 2%. That's the kind of fun house economy we're in. I think a lot of people just wish-- could we get through the slowdown in the job market we need to get inflation under control and get to the other side of this? We're just not there yet.