Hatzius: Jobs Growth Should Slow as 2013 Progresses

Goldman’s Chief Economist offers some thoughts on today’s big job’s report (via CNBC):

“I think you need to be cautious interpreting any individual number, but if you look at the broad report was good.”

“It’s quite possible.  I do think the overall numbers—if you look not just at today’s report but in general what has come out over the last couple of months—suggests pretty muted growth…some deceleration would not be surprising.”

“The impact of the sequester hasn’t really shown up to a significant degree…I don’t think we’ve seen quite as much as we would have expected to see at this point. I would still expect to see more of an impact, but I think that is going to come in subsequent months….”

 

Cullen Roche

Cullen Roche

Mr. Roche is the Founder of Orcam Financial Group, LLC. Orcam is a financial services firm offering research, private advisory, institutional consulting and educational services. He is also the author of Pragmatic Capitalism: What Every Investor Needs to Understand About Money and Finance and Understanding the Modern Monetary System.

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  • Anonymous1

    A few jobs here and there doesn’t mean much in the totality of the US economic money machine… and if needed nothing that another 20 billion per month won’t cure. Jan’s playing it safe verbalizing his position in support of continued QE but Mr. Market already knows QE4EVA! You really didn’t think today’s super rally was based on railcar loadings did you?

  • Boston Larry

    QE4EVA does not necessarily mean equity markets rally forever. This rally is likely to end long before QE ends.

  • Cowpoke

    Slow Job Growth Means Dow 16,000

  • barak

    The funny thing is the market rallied on a beat that has no significant statistical viability. It seems now a days any number is good as long as it isn’t exactly the consensus number.

  • LRM

    It is always hard to figure the take away from what is being said here by Goldman.
    As Cullen has said numerous times in the past, Hatzius understands the monetary system and he sounds surprised that the expected declines in deficit spending has not yet showed up in corporate profits and margins to a degree that would cause the forward looking equity markets to make their adjustments to calculations.