The Breakdown Jobs Revision Clears the Way for Fed Cuts
Aug 23, 2024
The discussion kicks off with a potential pivot in the Democratic Party's stance on cryptocurrency, revealing a mix of optimism and skepticism within the crypto community. Next, significant adjustments to job growth figures expose underlying weaknesses in the labor market, raising eyebrows about future Federal Reserve policies. The shift in political attitudes towards cryptocurrency gains attention, alongside a critical look at the reliability of pandemic-era employment data. All eyes are on the upcoming Federal Reserve meeting as economic revisions reshape the policy landscape.
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Potential Democrat Crypto Pivot
- The crypto industry is watching for a Democratic crypto pivot from Kamala Harris's campaign.
- While there's been talk of support for emerging technologies, there's no concrete action yet.
Jobs Revision and Fed Rate Cuts
- The Bureau of Labor Statistics revised job growth numbers significantly downwards.
- This clears the path for Fed rate cuts to begin in September.
Critique of BLS Methodology
- Economist Anna Wong suggests the BLS birth-death model, used for statistical adjustments, is inaccurate.
- The model's assumptions about new firm creation may have skewed job growth data.