Jobless Claims Data Continues To Ignore The Fed

Initial jobless claims dropped (again) last week to 191k (fewer than expected) and once again standing in the face of anecdotal evidence of waves of headlines of mass layoffs.

Source: Bloomberg

Continuing claims remained below 1.7mm.

California and Illinois saw the biggest weekly drop in claims while Indiana and Massachusetts saw the largest increase…

Assuming a 3mo lag between monetary policy and its effect on the economy, we can comfortably claim that something’s broken…

Source: Bloomberg

Maybe what we really need is a banking crisis to collapse credit?