Booming Economy Victims
From a strictly economic standpoint, this week saw the release of several impressive reports.
It just so happened the 3 best reports were also the 3 most important reports (based on their typical ability to cause a reaction in financial markets).
Chief among these was the big jobs report on Friday. This contains data but the two traditional headlines are "nonfarm payrolls" (NFP... a tally of jobs created) and the unemployment rate. Both did quite well this week and both continue playing key roles in an uncommonly long economic expansion.
Abundant employment is always a good thing, right?
In general, that's true, but there are some losers when the economy is chugging right along. Interest rates have a long history of rising in response to stronger job creation. In fact, the NFP (non farm payroll) number has been the single most important piece of economic data for rates over the years.
Lately, however, strong job creation has grown to be somewhat of a given. Due to the severity of the great recession, experts aren't too surprised to see the economic expansion lasting so long or doing so well. Simply put, we had a lot of catching up to do.
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