On the February Jobs Report

Donald L. Luskin
Friday, March 6, 2020
The US economy comes into the virus crisis strong – but the Fed will still cut another 50 bp.
Strategic view: 

A massive beat, on top of big upward revisions. It’s relevant, because just as Covid-2019 is more lethal for weak patients, its economic effects will be worse for weak economies – and this shows that the US economy is a very strong one. There’s nothing here that the Fed will even consider at next week’s FOMC, as it likely gives in to the market’s entirely understandable demand for another 50 bp rate cut, having bungled this week’s.