BlackRock's Rosenberg Says Jobs Report Validates Powell

Right now the market is celebrating. Are you celebrating also, do you think this is a reason to buy or do you view this as basically a lot of noise for people who are just looking for any direction at all? Well, I think Jonathan said it. This couldn’t have been scripted better there. This report runs the tables for a good report. This is bad news, a little bit is good news, but it’s really just about, you know, how bearish we got. Jonathan mentioned it, ECI, the rate moves the expectations in front of Wednesday’s FOMC. Some of this is just positioning. You had a lot of bearishness, so people put shorts on. There was a big momentum to higher rates. But this is a good report across the board for validating what we heard from Jay Powell on Wednesday. That kind of what me worry about inflation. No, things are going to slow, don’t get overexcited. And I think it’s a little bit of that over excitement on the short side that’s being wrung out of the markets right now. I mean is that basically your take away too that basically you just are not going to wait to hear what other Fed officials are going to say? And otherwise it seems like this is the same place we were before. Well, I think this is a going to, you know, kick off the narrative about long and variable lags to the to the downside. And what a remarkable shift, you know, bookmarking the week, the beginning of the week was wages accelerating surprise to the upside, kind of a lot of hawkishness. Now you beat on the downside in terms of AHE and the payroll report. It drives the narrative to the other direction. So there’s a lot of short termism. But this Fed is anchored on a couple of things. That’s what I want to hear about #1. They’re anchored on this concept that it’s about long and variable lags. They’re worried about those long and variable legs, the policy error that Mohammed talks about and that creates this asymmetry. And they’re worried about that because they believe that this policy is sufficiently restrictive. I don’t hear enough about the implication of financial conditions impacting that degree of of of of perceived restrictiveness. And this is going to ease financial conditions. I mean, that’s the flip side as you’re running monetary policy with financial conditions. In the driver’s seat, not interest rates. So sometimes when the market gets ahead of itself, it’s too much of a good thing. Wouldn’t say that’s the conclusion to draw from today, but those impacts, that assessment is what I want to hear from this people we see.