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What’s Good for Wall Street Isn’t Necessarily Good for Main Street

Here’s what we learned from the October Jobs Report:

  1. The unemployment rate is at 3.7 percent. We haven’t seen these numbers since the 1960s. Read full report HERE.
  2. Wages and salaries jumped 3.1 percent for the year, which pretty much guarantees additional rate hikes. Some are saying as soon as December and the market didn’t like it.


For starters, what’s good for Wall Street isn’t necessarily good for Main Street. I cannot stress that enough because there is a historical disconnect we should always be aware of. Low unemployment and higher wages have a positive impact on people’s lives not to mention the economy as a whole, but Wall Street is throwing a fit because we are finally in a full economy recovery and the era of cheap money is coming to an end. The Fed’s main objectives are full employment, stable prices and reasonable rates. The lack of job growth and wage increases is what kept rates low for so many years. The goal was to make things more affordable for consumers and to make it easier for businesses to invest and hire workers. It wasn’t entirely about the one percent, although it sure did look that way for almost ten years. So unless there is a complete reversal and the economy stalls, I don’t think the Fed is going to change course. Federal Reserve Chairman Jerome Powell has made it clear that he wants to reach a neutral rate.

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