Job Numbers Look Strong – But They Aren't; The Fed's Political Dilemma

1. Job growth exceeded expectations but with significant downward revisions. 2. U3 unemployment rate held at 4.2% due to labor force shrinkage. 3. Manufacturing and services indices indicate contraction, reinforcing economic slowdown. 4. Fed shows no intention of rate cuts despite slowing economy. 5. Major equity markets reacted positively before bond yields rose.