The Employment Report: Strong, Solid, or just Dull?

The report was weaker than expected. However, nothing in this report will cause the Fed any concern about their prevailing view of the economic picture in the US. Lower than expected jobs numbers were met by expected hourly earnings growth. What matters is that the predominant view at the Fed [although misguided] is that the economy is at or below the level of employment that keeps inflation in check. The charts depict what has been going on for the past two years, coinciding with the period the Fed became more obstinate about tightening. The top chart shows that during the…