The December Jobs Report Highlights the Fed’s Mistake
The Federal Reserve’s reputation may not be burning down as rapidly as Los Angeles, but the outcome is likely to be the same: rubble, ashes, recriminations, and an expensive rebuilding.
The Department of Labor said on Friday that the U.S. economy added 257,000 jobs in December, thrashing expectations that job growth would fall to around 150,000. The report blew out the range of expectations, with economists having penciled in various forecasts from 125,000 to 200,000. None of the economists surveyed by Econoday had the unemployment rate falling—and several had it climbing—yet it ticked down to 4.1 percent.
When the Fed announced its big rate cut back in September, the first since its too-long delayed reaction
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