ACTV - 5 Things Dividend Investors Need To Know About The Fed Jobs And Inflation

2024-06-17 07:00:00 ET

Summary

• It's been an exciting few weeks for economic news, with jobs, inflation, and the Fed all making headlines.
• There was a strong job market in May 2024, with a blowout of 272,000 net jobs added, a 4% unemployment rate, and 4.1% wage growth, which the Atlanta Fed thinks is actually 4.7%.
• Inflation is showing signs of cooling, with core PCE rate potentially on track to hit 1.8% within a few months.
• The Fed projects one rate cut this year and four next year, and the bond market expects a 78% chance of five rate cuts next year.
• GDP growth of 2% to 3% is expected to continue for the next six months, and it appears the "no landing" Goldilocks scenario might be playing out. With the market not significantly overvalued, the risks of a severe bear market appear very low right now.

It's been an interesting few weeks of economic news. So, to help you make sense of the wild swings in stocks and bonds, let's take a look at the five things investors need to know about jobs, inflation, and the Fed's plans for interest rates.

1. What You Need To Know About Jobs

The latest jobs report, released on Friday, June 7, provides a comprehensive overview of the U.S. labor market's performance in May 2024 and showed a stronger-than-expected jobs market.

Total Jobs Added: The U.S. economy added 272,000 net jobs in May, far exceeding the 180,000 jobs expected....

For further details see: