Jon Hilsenrath is sometimes described as a ‘mouthpiece’ for the Federal Reserve, such is his perceived connectedness with the bank. As such, it is worth paying to attention to what it is he writes and speaks about.

“the Labor Department report released Friday (i.e., the NFP figure) could raise doubts inside the Fed about how quickly the job market is healing and deflate (the) hope (of beginning to reduce the size of the bond buying program).”

There are cautionary flags in Friday’s report

  • “The monthly gain in payroll employment, at 88,000 in March, was the smallest since June”
  • “hourly earnings were up just 1.8% from a year earlier, meaning little upward momentum in household purchasing power or inflation”

Jobs Report Reinforces Fed Wariness About Premature End to QE3 (Wall Street Journal – does not appear to be gated)