Unemployment Rate Breaks Below 4.0!

The latest number from the Bureau of Labor Statistics shows unemployment at the end of April at 3.9%.  This is the lowest rate in 17 years.

So much for confused Austrian-lites who expected the economy to tank back in back in December 2015 when the Federal Reserve made its first interest rate hike since the Great Recession. Many of them stated that the Fed would have to reverse that first rate hike!

But since then, in total, we have had 6 rate hikes and the economy is still going strong.

In the EPJ Daily Alert, currently, I am warning in the short-term about the stock market but I am still not ready to put out a warning out about the entire economy. I might issue a warning by the end of this summer but total overall economic weakness is still far from a certainty.

Meanwhile, in the White House, the stable genius with the Rogaine fuelled orange hair is crowing about the unemployment number as though he is driving the number.

JUST OUT: 3.9% Unemployment. 4% is Broken! In the meantime, WITCH HUNT!

— Donald J. Trump (@realDonaldTrump) May 4, 2018

The rate is, of course, driven by Federal Reserve monetary policy, which went into full blast money printing, which is causing the declining unemployment rate, long before Trump entered the White House to sit on the 4 to 8-year golden throne.

-Robert Wenzel