May 15

Hot jobs are making Powell mad

The hot job market is not making Jerome Powell happy.

Hot Jobs are making Jerome Powell angry

Every CPI, there are more and more jobs! We need to cool the jobs down. Think of jobs as a fire, we need to extinguish them. It's like the economy is dialing 911 and asking for the fire department but the fire department throws more gasoline on the job market, it's too hot! 

Quote of Wall Street Trader:
We need at least 60% unemployment if we're gonna beat inflation. Right now it's 5% and we don't get the new numbers until May 10th, 2023. I have a feeling they will be up. If the numbers are up I may just quit my job and live in my van. I've been interested in the Morgan Stanley Van Life program they offer over at Morgan Stanley.

Jerome Powell is just tech support, he has one tool and that's to raise rates. If he wants to extinguish jobs and be the fire department that shows up when we call 911, he needs to crank the knob that says "rates" all the way to the right and go critical.

Jobs going critical in April 2023, with +253,000 jobs added.

The fix here is simple, raise the rates to an insane rate. You know the term burn rate right? Have a hike so high that people go "Oh finally, the firemen I called 2 years ago are here!"