Markets Care More About Inflation Than Job Gains
Bonds are increasingly suggesting that the Fed will be unable to constrain rising consumer prices without tipping the economy into a recession.
Even though the number of American workers is approaching pre-pandemic levels, many are feeling the economic pinch.
Photographer: Frederic J. Brown/AFP/Getty Images
Despite a jobs report that showed a much-better-than-expected addition of 678,000 nonfarm jobs last month — bringing the nation ever closer to pre-pandemic levels — there were no fireworks on Wall Street Friday morning. In fact, the report, which showed the best gains since July, landed with a thud.
The S&P 500 Index fell for the fourth time in the past five days, and the bond market continued to signal a growing risk of recession. Meanwhile, many American workers are finding it harder to put food on the table, even with the low 3.8% unemployment rate.