So we have hot inflation with the Fed tapering (and threatening a higher level of taper) and then we have a jobs report today that was extremely soft. 210,000 new jobs?? It is crazy, but I seldom believe these reports anyway–but folks act on them so we all need to pay attention.
Powell turns from a dove to a hawk in an instant and now is faced with a quandary. Is the huffing and puffing from the Fed chair now going to turn into whimpering with this jobs report? Another flip-flop coming?
The equity markets can’t seem to figure it all out–the S&P500 is off 1% at this moment. The 10 year treasury is tumbling again–down almost 8 basis points to 1.37%. The 2 year yield is off just 2 basis points.
I guess we will see in a few days where we go from here—memories are very short with traders and we will be on to the next ‘event’ soon.