The markets were waiting for some goods news during the Covid-19 pandemic (although I am certain that Dr. Fauci (nee Strangelove) will produce some dire forecast about new swine viruses to rattle confidence). The good news is … Non Farm payrolls jumped +4.8 million in June.
And the number of working Americans rose for the second straight month and the unemployment rate dropped to 11.1% in June.
As a result of the decrease in the unemployment rate, the Taylor Rule (Rudebusch variation) now calls for a Fed Funds rate of -7.07%.
The government shutdown of the US economy is having devastating effects. For example, the Dallas Fed Manufacturing Outlook Level Of General Business Activity »(SA, % Balance/Diffusion Index) has crashed to its lowest level since before The Great Recession.
Not surprisingly, Case-Shiller home prices in the Dallas TX area are pretty steady and seemingly immune to Dallas area unemployment rates. So far.