Time for Another Rate Cut by the Federal Reserve!: Wednesday Forecasting
My rule-of-thumb, the result of my degree in forecasting from Parker Brothers University, is that the best estimate of the current state of the labor market is to average the ADP number that came out this morning with the BLS number that will come out on Friday. And my rule-of-thumb is that the BLS number is likely to be 1/3 of the way from the current trend to the ADP number. With the current trend at about 130,000 jobs per month, and with today’s ADP number at 70,000, I now think that the economy added only 90,000 payroll jobs last month. I think that is enough of a warning light that it ought to trigger another Federal Reserve rate cut, given the tail risk generated by the chaos monkey in Washington:
ADP: November Employment Report http://www.adpemploymentreport.com/2019/November/NER/docs/ADP-NATIONAL-EMPLOYMENT-REPORT-November2019-Final-Press-Release.pdf:
FRED: All Employees, Total Nonfarm https://fred.stlouisfed.org/graph/?id=PAYEMS,#0:
#forecasting #highlighted #macro #2019-12-04
