The consensus for tomorrow's non-farm payrolls report is +400K but after yesterday's ADP data hit 800K, there's some optimism out there.
More:
- We are closing in on achieving our two goals 'in the short run'
- Don't think monetary policy should accept today's labor market as what we want to see in the future
- Trimming balance sheet should come after raising Fed funds rate
The 'short run' comment was in the Fed minutes and it's helped to push up the implied odds of a March hike to 80%.
Reminder:
Daly Nov 16: I have a strong bias to stick to the current taper pace. Patience is the boldest, best action.
Daly Dec 2: Fed might need to taper asset purchases faster than anticipated
Powell Dec 15: My colleagues were out talking about a faster taper, and that doesn’t happen by accident.
