No sooner was the January jobs report released than the Wall Street
Journal posted a succinct headline: "Hiring, Wages Pick Up as Job Market Nears Full Health".
Whether the job market is actually as red hot as the BLS' headline numbers is a debatable topic, but it is absolutely clear that the "emergency" the Fed cited 73 months ago when its pegged the money market rate a zero has long since vanished. Indeed, by the standards of all prior history, ZIRP was a death bed remedy. Prior to December 2008, the Fed had never, ever pegged the funds rate at zero-not even during the Great Depression.
So if the US economy did generate new jobs at the 4 million annual rate implicit in the November-January average, how is it that not only is the money market still pinned to the zero bound, but that the Fed continues to energetically waffle over how many more months it will remain there? Don't these people know what the words "emergency" and "extraordinary measures" mean in plain English?
Read more at Click here / www.trade4x.net
Whether the job market is actually as red hot as the BLS' headline numbers is a debatable topic, but it is absolutely clear that the "emergency" the Fed cited 73 months ago when its pegged the money market rate a zero has long since vanished. Indeed, by the standards of all prior history, ZIRP was a death bed remedy. Prior to December 2008, the Fed had never, ever pegged the funds rate at zero-not even during the Great Depression.
So if the US economy did generate new jobs at the 4 million annual rate implicit in the November-January average, how is it that not only is the money market still pinned to the zero bound, but that the Fed continues to energetically waffle over how many more months it will remain there? Don't these people know what the words "emergency" and "extraordinary measures" mean in plain English?
Read more at Click here / www.trade4x.net
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