Alternative Visions - Jobs and the Fed

The Federal Reserve raised rates again last week. Financial markets interpreted the 0.25 bps raise, the lowest in the past year, as evidence the Fed will stop raising and start lowering rates again by summer 2023. But the Fed has said over and over it is targeting the jobs market for evidence that rate hikes are producing unemployment that will lower wages, consumption and demand and therefore prices. (Even though wages have already fallen in real terms throughout 2022). Then the Friday February 3 jobs numbers came out showing 517,000 jobs ‘created’ in January 2023. So what’s going on? Were there really 517k new jobs? Or, as I’ve been arguing the jobs numbers are corrupted and inaccurate. Today’s Alternative Visions show takes on that question (watch for my further detailed written article out soon and accessible from my blog, jackrasmus.com). If the numbers aren’t accurate, why is the Fed continuing to raise rates? Will the Jan. jobs numbers mean it will raise rates longer and higher?