How the Fed’s Reality Check Will Impact the Markets
The markets could very easily be in a state of chaotic disarray by year-end.
I have written for some time about the plethora of misleading economic headline data in the U.S., but it seems that the Fed might be starting to come clean. For example, after the recent shocking May jobs report, which portrayed an absurdly over-optimistic job market, Jay Powell confessed that the data “may be a bit overstated.” A bit? The employment data has been absolutely deceptive unless you dig into the weeds. I think the following chart from the Fed really sums up beautifully how strong the jobs market really is.
