The unemployment rate is currently at a 7.6% and the Feds are worried about data-dependent exit strategy for its market-friendly stimulus aimed at keeping borrowing rates low and spurring job creation.
The ADP said 188,000 private-sector jobs were created in June, and the government reported a bigger-than-expected 5,000 drop in initial claims for unemployment benefits jobless to 343,000. The question for investors Friday is whether a strong — or good — jobs number will be viewed as good news since that would likely mean a quicker start to the Fed’s QE exit. Stock investors fear that the market will suffer for a period when the Fed tapers its $85 billion in monthly purchases of mortgage-backed bonds and long-term government bonds to zero.
The current unemployment rate is not just a problem for the Feds and investors, what about the people that can’t provide for their families?
Job creation in the U.S. is essential particularly in the current economy.
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