President Trump called on the Fed Friday morning to begin a new round of “quantitative easing.”
Trump believes Fed chief Jerome Powell’s last hike in December has taken the wind out of the sails of the US economy. The comment comes after the Labor Dept.’s March jobs number came in at solid 196,000 following February’s anemic 20,000 jobs.
Perhaps Trump was pointing to slowing wage growth in March, with average hourly pay increasing 3.2 percent from a year earlier. That was down from February’s year-over-year gain of 3.4 percent, which was the best in a decade.
As I wrote yesterday, the March new jobs report would come in like a lion because of revisions to previous two months. However the revisions reported Friday were equally anemic as February’s number was revised to 33,000, from an initial 20,000.
The revision will have to be revised again, since the 33,000 figure is very low given January and March numbers averaging 200,000. I do not believe US hiring managers colluded to keep the February number artificially low.
The problem with revising the revision, is it will not get any notice in the news.