{"id":42317,"date":"2019-01-06T12:21:40","date_gmt":"2019-01-06T17:21:40","guid":{"rendered":"https:\/\/olduvai.ca\/?p=42317"},"modified":"2019-01-06T12:21:40","modified_gmt":"2019-01-06T17:21:40","slug":"weekly-commentary-global-markets-plumbing-problem","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=42317","title":{"rendered":"Weekly Commentary: Global Markets\u2019 Plumbing Problem"},"content":{"rendered":"<h3 class=\"post-title entry-title\"><a href=\"http:\/\/creditbubblebulletin.blogspot.com\/2019\/01\/weekly-commentary-global-markets.html\">Weekly Commentary: Global Markets\u2019 Plumbing Problem<\/a><\/h3>\n<div class=\"post-header\">\n<div class=\"post-header-line-1\">\u201cGoldilocks with a capital \u2018J\u2019,\u201d exclaimed an enthusiastic Bloomberg Television analyst. The Dow was up 747 points in Friday trading (more than erasing Thursday\u2019s 660-point drubbing) on the back of a stellar jobs report and market-soothing comments from Fed Chairman \u201cJay\u201d Powell.<\/div>\n<\/div>\n<div id=\"post-body-5393745044313525991\" class=\"post-body entry-content\">\nDecember non-farm payrolls surged 312,000. The strongest job gains since February blew away both estimates (184k) and November job creation (revised up 21k to 176k). Manufacturing jobs jumped 32,000 (3-month gain 88k), the biggest increase since December 2017\u2019s 39,000. Average Hourly Earnings rose a stronger-than-expected 0.4% for the month (high since August), pushing y-o-y gains to 3.2%, near the high going back to April 2009.<\/p>\n<p>Just 90 minutes following the jobs report, Chairman Powell joined Janet Yellen and Ben Bernanke for a panel discussion at an American Economic Association meeting in Atlanta. Powell\u2019s comments were not expected to be policy focused (his post-FOMC press conference only two weeks ago). But the Fed Chairman immediately pulled out some prepared comments, perhaps crafted over the previous 24 hours (of rapidly deteriorating global market conditions).<\/p>\n<p>Chairman Powell: \u201cFinancial markets have been sending different signals \u2013 signals of concern about downside risks, about slowing global growth particularly related to China, about ongoing trade negotiations, about \u2013 let\u2019s call &#8211; general policy uncertainty coming out of Washington, among other factors. You do have this difference between, on the one hand, strong data, and some tension between financial markets that are signaling concern and downside risks. And the question is, within those contrasting set of factors, how should we think about the outlook and how should we think about monetary policy going forward. When we get conflicting signals, as is not infrequently the case, policy is very much about risk management.<\/p><\/div>\n<div>\n<p>\u00a0\u2026click on the above link to read the rest of the article\u2026<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Weekly Commentary: Global Markets\u2019 Plumbing Problem \u201cGoldilocks with a capital \u2018J\u2019,\u201d exclaimed an enthusiastic Bloomberg Television analyst. The Dow was up 747 points in Friday trading (more than erasing Thursday\u2019s 660-point drubbing) on the back of a stellar jobs report and market-soothing comments from Fed Chairman \u201cJay\u201d Powell. December non-farm payrolls surged 312,000. The strongest [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[23725,7756,240,260,303,1849,368,16888,3650],"class_list":["post-42317","post","type-post","status-publish","format-standard","hentry","category-economics","tag-american-economic-association","tag-credit-bubble-bulletin","tag-economic-growth","tag-employment","tag-fed","tag-financial-markets","tag-global-markets","tag-jerome-powell","tag-us-federal-reserve"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42317","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=42317"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42317\/revisions"}],"predecessor-version":[{"id":42318,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/42317\/revisions\/42318"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=42317"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=42317"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=42317"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}