Citigroup has directly torn off this fig leaf: the drop in the unemployment rate is entirely due to the labor force participation rate plunging from 61.8% to 61.5%. 832k people have exited the labor force.


If the participation rate had remained unchanged, the actual unemployment rate would be over 4.5%.
This is not the job market improving. It’s people simply giving up looking.
Ridiculous.
The three pillars supporting rate hikes—rising oil prices, accelerating wages, and core PCE above target—have all collapsed. Oil prices have fallen back to pre-conflict levels, and after the methodological revision, core PCE will be revised down by 20 to 30 basis points.

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chichipipi
· 3h ago
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