A BREATH OF FRESH AIR! By Chriss Street From the
testosteronepit writes. Strong Job Openings and Hiring Scare the Fed
Posted on 4 2 Comments
http://www.testosteronepit.com/home/2014/6/12/strong-job-openings-and-hiring-scare-the-fed.html
A BREATH OF FRESH AIR! By Chriss Street From the
testosteronepit writes. Strong Job Openings and Hiring Scare the Fed
Posted on 4 2 Comments
Strong Job
Openings and Hiring Scare the Fed DateThursday, June 12, 2014 at 5:16PM
By Chriss Street: CEO of the American Exceptionalism Institute and host of the Agenda 21 Radio Show on the Salem Broadcasting Network. He teaches Microeconomics at the University of California, Irvine, and lives in Newport Beach, CA. The article originally appeared on Chriss Street and Company.
The U.S. Federal Reserve Chairman Janet Yellen has stated that she closely follows the Bureau of Labor Statistics (BLS) private sector “Openings and Labor Turnover Survey” (JOLTS) to gage the effectiveness of the Fed’s monetary policy and risks of rising inflation. The JOLTS for June 10 revealed job openings jumped in the month of April to 4.455 million, 355,000 stronger than the most optimistic Wall Street expectation of 4.1 million. Coupled with strength in the JOLTS hiring data, the Federal Reserve may fear their policies are stimulating inflation and start raising interest rates.
The Federal Reserve begins their two day monthly monetary meeting on June 17. After a day of reviewing economic activity, the powerful Federal Open Market Committee that sets the interest rate on Fed loans money to commercial banks will convene on June 18. With the onset of the Great Recession, the Fed cut the discount rate 17 times from 6.25% on August 17, 2007 to the current .75% since February 19, 2010 to try to stimulate job growth.
As Vice Chairman of the Fed, Janet Yellen stated on numerous occasions that the JOLTS report is a key “source of labor market information.” The latest JOLTS report released on June 10 revealed that April job openings accelerated by 19.9% over the prior month of March and are up 18.8% versus the same month last year. The report also states that private sector hiring also accelerated by 16.6% over the prior month and 17.9% versus the same month last year. JOLTS is an excellent predictor of future economic strength and the reported numbers are extraordinarily strong.
Another sign of the strength in hiring is the JOLTS “Quit Rate,” which measures the monthly percentage of employed Americans that voluntarily leave a job. The current quit rate is at the highest level since June of 2008. Normally, a strong quit rate means workers are able to change companies for increased pay and benefits.
After years of little U.S. inflation, the consumer price index rose to 1.5% in March and jumped to 2% in April. The May CPI report will be released on June 17, the same day as the beginning of the Fed meeting.
The Federal Reserve has used every monetary tool possible to try to stimulate the U.S. economy and jobs. They bailed out numerous financial institutions, cut the discount rate by 88% and bought almost $3 trillion of bonds. When it did not appear that their efforts were having much positive effect on jobs, the FOMC on December 12, 2012 raised the top range of their inflation target by half a percent to 2.5% and continued injecting cash into the economy by buying bonds.
After their May 21 meeting, the Fed stated in their public report that they saw no inflation risk in fueling job growth. But with the latest JOLTS report for jobs and hiring are much stronger than Wall Street analysts expected. The Fed may fear that what they are stimulating is inflation. Such fears would require the Fed to reverse course and begin raising interest rates much sooner – and this might color the June 18 FOMC meeting. By Chriss Street, Chriss Street and Company.
Also by Criss Street: The California Bureau of State Audits set off a scandal by disclosing that the Controller’s Office made accounting misstatements of $31.65 billion. That’s about a third of California’s General Fund Budget! Read…. “They’re not using their heads”: California Hit with $31.6 Billion in Accounting Misstatements
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Dan on said: Edit
So the Job Openings Rate
is going up? Why?
They are reporting those jobs that are needed in foreign countries for We The People to buy their products here.
So the UN-Employment Rate is going down? Why?
They are reporting those that are being paid benefits, which is coming down to ZERO, so 100 million unemployed but NOT paid any benefits.
They are reporting those jobs that are needed in foreign countries for We The People to buy their products here.
So the UN-Employment Rate is going down? Why?
They are reporting those that are being paid benefits, which is coming down to ZERO, so 100 million unemployed but NOT paid any benefits.
V.K. Durham on said: Edit
Dan. Americans who are no
longer on the employment rolls were dropped, no longer included in this
increasing “joblessness-homelessness” problem which grew out of shipping
American Manufacturing, Steel Mills, Tool and Dye Specialist, Garmet Workers of
America, Manufacturing, Furniture Manufacturers, the Mills for making fabrics
and carpets ad infinitum and those formerly employed in other industries such
as our County and State Records Departments and replaced under Ronald Reagans
Restructuring of America which cost those individuals near retirement to lose
their retirement benefits as those remaining few jobs were taken over by
Reagans “imports” from Asia.
The formerly employed.. they applied for Unemployment Insurance.. when that ran out they were dropped from the rolls and have not been counted since PROP 13 the Reagan Reconstruction of Government.
If I had to make a statement as to how many do I perceive are homeless, jobless since Ronald Reagan.. Well I would begin with the 2.4 Million Family Farms which averaged 2.5 members per household, then I would look at the 100 Million American Families who lost their homes averaging another 2.5 members per household.. and keep on counting.. A conservative ‘guestimate would be around 86 percent + or – would be subjected to that which you address.
Thank you for writing.. I truly enjoy when ‘sane’ responses are made to the articles I post.
Have a great, fantastic, fantasimousamaglorius Fathers Day..
V.K. Durham
The formerly employed.. they applied for Unemployment Insurance.. when that ran out they were dropped from the rolls and have not been counted since PROP 13 the Reagan Reconstruction of Government.
If I had to make a statement as to how many do I perceive are homeless, jobless since Ronald Reagan.. Well I would begin with the 2.4 Million Family Farms which averaged 2.5 members per household, then I would look at the 100 Million American Families who lost their homes averaging another 2.5 members per household.. and keep on counting.. A conservative ‘guestimate would be around 86 percent + or – would be subjected to that which you address.
Thank you for writing.. I truly enjoy when ‘sane’ responses are made to the articles I post.
Have a great, fantastic, fantasimousamaglorius Fathers Day..
V.K. Durham
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