After the November jobs report showed the US economy added 227,000 jobs during the month, as the unemployment rate increased to 4.2%, Annex Wealth Management chief economist and strategist Brian Jacobsen joins Seana Smith and Madison Mills on Morning Brief to discuss what the print says about the economy amid the Federal Reserve’s ongoing rate easing cycle and ahead of President-elect Donald Trump’s return to the White House.
The economist says the jobs print is "not necessarily a Goldilocks report" but is "more like a little engine that could report as far as just the economy." He explains the US economy "just keeps moving along, keeps climbing that hill, that wall of worry. And now it’s really up to the Fed as to what are they going to do with this data."
Jacobsen says he believes the Fed "made a lot of mistakes along the way, but thankfully American consumers and American businesses have really just kept chugging along ahead to make up for those mistakes."
As investors weigh the impact of Trump’s policies and the Fed’s next moves, the economist says "For 2025, it’s really going to be uncertainty around fiscal policy, because they are likely going to take a good chunk of the year trying to figure out that budget reconciliation process as far as all the horse-trading that takes place in order to extend, ultimately, the Tax Cuts and Jobs Act … What is going to be clear, I think, is more the monetary policy side continued gradual cuts."
He adds, "If the monetary policy, the cutting of rates, really trumps the fiscal policy side, that should serve as a fairly favorable backdrop for risk assets, but it’s not going to be without its risks along the way."
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