Mixed labor report and Federal Reserve's next steps?

The labor report is something both the FED and the market care about, as the labor market plays an important role in predicting inflation direction (through wage costs), recession (through unemployment rate), and Fed's interest rate decisions.

However, the two employment survey numbers released last week—one through payroll statistics and one through household statistics—are completely contradictory. One indicates jobs increasing surprisingly high, the other indicates jobs decreasing by a corresponding amount.

• So which data reflects the actual state of the labor market?

• Which way will the Fed's attitude lean?

• Will the Fed proactively soothe the financial market's reaction?

These are the main topics discussed in Viet Hustler's macroeconomic summary article.

Mixed labor report