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You -- -- attend public July jobs report disappoints Wall Street the economy added 23000.
Fewer jobs and economists expected.
Will today's numbers impact the Fed's plans to taper joining me now Jeff Cleveland -- -- senior economist Jeff great to see if I.
We -- -- related we were talking earlier about how gold reacted the jobs number at first they thought it was going to be a good reports of a gold went for it went down.
And then you guys they read it may realize it -- -- -- because fewer people getting hired than expected to.
More people pulling out of the work for worse than expected and three.
The work week itself is shrinking the number of hours average hours of the work week are -- All those add up in my eyes to a bad report what about your rise.
I think there's three numbers to keep in mind David 2121000.
And the third number is seven point 3% for the unemployment rate so let's take each of those.
The Fed needs -- -- about 2121000.
Jobs each and every month.
The rest of the year to get to their unemployment rate -- we fell short of that today citing the market's initial reaction was right that the likelihood of tape brain.
The likelihood taking away some of that accommodation.
Is pushed back.
The second one is that 2% inflation target.
I know you're talking about inflation earlier stated earlier segment but I can't find out what I'm looking for it it's -- wage growth.
It's not in any of the core measures -- Let's go to the grocery store -- -- -- very simple just go to the grocery store shop first saw -- for me to or whatever it is I know some prices are down.
But most prices generally speaking your weekly grocery bill is gonna go up.
It's true but you know I like to look at the Cleveland -- Measure of inflation it's a core measure that includes food and energy it is excludes what are the out liars and any given month and even that measure David is still up.
Only about 2%.
Vs a year ago 2% is not disinflation or or do you -- by any stretch of the imagination.
But nor is it very very rapidly increasing inflation is still -- not -- -- OK let's let's focus on his first second because.
Here's -- here's why Ben Bernanke's perspective bothers me a little he was saying that inflation doesn't were in the disinflation is a bigger concern that's what he said.
This week that's why the market was -- he's gonna keep money pretty but.
To my mind what that means he's focused on demand.
Okay he's focus on people going out and -- he wants more people that is he wants more stimulus whether it's monetary stimulus.
Or are more government spending money he wants he thinks that will improve the kind of what about supply what about production.
We want -- country that is producing -- don't we isn't that.
More important right now than a country that's consuming more.
This is gotta be the biggest.
Flaw out there for for macro economic thinking.
You know that -- we just pump up the demand side if we just -- war.
Monetary stimulus in the economy you'll be fine.
You know we are nine months into a very unconventional set -- policies QE3 and -- -- for David and I agree with you we are stuck with lackluster growth.
Lackluster job growth and and still we haven't seen that -- in the economy.
But economists out alerts -- march.
The eighty orthodoxy of of the macro economic community is for doing more -- you see that reflected -- markets today both equities.
And and bond markets also.
Let's start and get back to the labor market because it's related to all this we're becoming a nation.
-- part timers that as you look at the hourly wage -- week it's now.
I think it's below 35 hours a week where it's close to and a lot of people of course obamacare.
Encourages people to hire folks part time.
He it's it's not a good thing when people aren't encouraged to produce more whether it's individuals producing more in their hourly work week.
Or watch murderers producing more at the factory.
That's right I've looked into the report that details -- report.
Those folks working part time for economic reasons that still remains historically at a very high level very very difficult signed there.
And important people who are outside of the labor force David.
That would love to have a job right now that category still over six million.
Americans which is very high.
Britain recently and also on his store basis so those just tell me that we have a tremendous amount of -- in the economy it's not being put to use.
And the policies.
There have been trying to address this problem David.
They just they've fallen short work well for -- -- -- into the recession very quickly chip because it it's not rocket sides you.
Decrease the cost of production if you want to have more production.
Who wanna grow faster you'll lower the cost of production that means lowering the cause of regulation and lowering taxes is -- -- that simple.
-- like to -- you know Washington Davidson we have lower taxes better regulation more certainty.
And more new business is forming and that's when we have jobs are I'm with you and I I didn't grow up and watch I moved out of there I Angola back anytime soon Jeff Cleveland pavement regal theater got to its good to see Jeff thanks for covenant -- --
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