Skip to comments.Prior To Fed Announcement, Jobless Claims Rise (Poor Money Multiplier and Velocity)
Posted on 09/13/2012 6:45:47 AM PDT by whitedog57
Jobless claims increased 15,000 in the week ended Sept. 8 to 382,000, the biggest gain in almost two months, according to Labor Department figures released today. The median forecast called for 370,000 claims. Tropical Storm Isaac resulted in about 9,000 applications for benefits, the agency said.
The job market is cooling as a global slowdown and looming U.S. tax policy changes keep businesses hesitant about hiring. Persistent unemployment, a grave concern according to Federal Reserve Chairman Ben Bernanke, is a focus for policy makers today as they meet to consider whether new steps are needed to boost the worlds biggest economy.
So, jobless claims are back to early December 2011 levels.
At least continuing jobless claims dropped (but are still in a rut).
Bear in mind that the M1 money multiplier and M2 money velocity are low by historical standards dampening any monetary changes to help the economy.
Another bad jobs report may encourage The Fed to take action today, but it is handcuffed by lack of lending by banks to consumers and businesses.
On the inflation front, the Producer Price Index rose the most since 2009. 1.7% for the month of August.
(Excerpt) Read more at confoundedinterest.wordpress.com ...
We need more (monetary) cowbell.
Because it worked so well the first, second and third (twist) times!
Obama blames hurricane Isaac, I think a much bigger factor was the pink slips that 20-25 thousand people received after Obama moved his speech indoors
I remember the good old days when jobless claims were trending down, the news broadcasts led off with this all-important economic metric. Nowadays, it doesn’t even rate a mention.
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