As the Fed Confronts the Inflation/Recession Dilemma, Markets Display Signs of Indigestion

Employment numbers for December were much weaker than expected with net new job creation at +199K, significantly below the +422K consensus view.  In addition, the workweek contracted as did factory overtime.  But, markets didn’t react much to this.  Instead, because the Labor Force Participation Rate (LFPR) continued well below its pre-pandemic level and didn’t budge […]