Job losses cut directly into the spending of the newly unemployed, and indirectly tend to have a very real impact on the confidence of those who are still working. If demand falls, firms will lay off more employees, and the downward spiral could put us over the edge into a bona fide recession before the Fed's actions can take effect.
More Quotes from Bill Cheney:
Today's employment report is just one month's report, but it's the one we've been waiting for, providing unambiguous good news about the labor market.Bill Cheney
I don't think it really suggests there is any inflation developing -- a 0.3 percent rise in wages is pretty manageable. But it's a pretty positive report it suggests that the overall jobs market is pretty healthy.
Bill Cheney
We're still several months away from job growth catching up with labor force growth and driving the unemployment rate back down, but that's really just a matter of time. Our economy is moving again, and once that happens it's actually quite hard to stop the forward momentum.
Bill Cheney
It's really a benign number, so no real new news.
Bill Cheney
We've gotten to a point now where inflation is something which, for the most part, we don't really think about. And I guess that's exactly the way Federal Reserve Chairman Alan Greenspan wants it.
Bill Cheney
As long as unemployment is relatively high ... the Fed is under no pressure to start tightening. Right now, you have to think they've really won the war on inflation -- they're at least as worried about deflation as inflation at this point. They're not going to do anything that would jeopardize this recovery right now.
Bill Cheney
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