US: Employment data importance fading - BBH

Research Team at BBH, suggests that the importance of the US employment data may be lessening as the continued recovery of the labor market may be necessary, but still insufficient to prompt the Fed to move.

Key Quotes

“The April FOMC statement acknowledged the improvement but cautioned that it was not lifting consumption, which drives the economy. That said, the strong April auto sales suggest the US consumer may be returning in Q2.

In addition to the weekly initial jobless claims, the North American session features speeches by four regional Fed Presidents (Bullard, Kaplan, Lockhart, and Williams). Many investors may be confused by the cacophony of Fed voices. We continue to advise that the clearest signals of intent and policies emanate from the Fed's leadership. Three voices in particular should be monitored, Yellen, Fischer, and Dudley.”