The labor market remains tight as the number of people employed continues to break records, but fresh data suggests the Federal Reserve’s hopes for a cooling economy might be gaining traction. The Labor Department’s monthly Job Openings and Labor Turnover Survey showed lower-than-expected job openings, no doubt a positive sign for Jay Powell and co. “That’s what the fed wants to see” says Roth MKM Chief Economist and Macro Strategist Michael Darda. In an interview with Yahoo Finance’s Brad Smith and Jared Blikre he added that “in their framework, that’s how they will pull inflation down over time.” Looking forward to the second quarter, Darda said, “The surprise going forward in the next few quarters could be that the economy, you know, drops off more than anticipated,” Darda notes that we’ve just been in a ‘very gentle earnings recession’ thus far, but if the earnings aren’t there, equity markets could see more trouble ahead and investors may need to “buckle up,” said Darda.
