Thoughts From Joe - January 17, 2013January 17, 2014 Posted by: Joe Morgan
Top Eight Job growth in December disappoints, primarily due to weather. The economy added just 74,000 jobs in December and the unemployment rate fell to 6.7 percent as many dropped out of the labor force. One report does not make a trend and there are other signals of health from the labor market that allow hope for a continued recovery to remain. One interesting note about December's data was the 273,000 people who are estimated to be out of work due to the weather. As the chart below shows, this is the largest number for December since 1977.
Source: Arbor Research
Stanley Fischer was nominated to be Vice Chair of the Fed under Yellen. Fischer is the former head of the Israeli Central Bank and a mentor to most mainstream central bankers and wannabes including Bernanke, Yellen, Mario Draghi, and Larry Summers. Fischer as number two at the Fed seems an odd choice given his vast experience and accomplishments. It may signal a lack of faith in Yellen from the Obama camp, but that doesn't really matter now. What's important is how Stanley Fischer sees his role at the Fed. Will...Read More