Jobless claims hits 40-year low. For now, says Bob Wenzel.
This may change (and soon) but we are now in the boom phase on the Federal Reserve created boom-bust cycle. Anyone that doesn’t think so is clearly delusional.
The number of people who applied for U.S. unemployment benefits slid to the lowest level since 1973 in the seven days ended July 18.
To be sure, there is a lot of volatility in the numbers from week to week, but the trend is clear.
There is zero chance that the Fed is going to launch a new round of quantitative easing, or fear hiking interest rates, under these conditions.
I want to make clear, though, that there is erratic money supply growth activity now going on, as I am reporting in the EPJ Daily Alert. This activity could move the economy from the boom phase to the bust phase, but it is far from definitive at this point. For now, I consider the bear still in hibernation.