RE:Fed Hikes to continue with good jobs report. This article highlights what I have been talking about.
1......going into the initial Fed rate hikes there were twice as many job openings as unemployed people and so what has happened is that the number d job openings have dropped but employment has stayed high- but this will change in the coming months
2....the economy is still absorbing trillions in Government stimulus which is working in the opposite direction as the Fed raising interest rates so it will take time before the bottom falls out for the economy
3..... as long as interest rates are below the inflation rate the stance by The Fed is stimulative
The problem is that the longer the Fed keeps rates below the inflation rate the higher interest rates will have to rise
So what do you need to watch?
It all boils down comparing the Fed rate to the inflation number. As long as it below the inflation rate the more there will more interest rate hikes