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Market Extra: Brace for economic data to be extremely messy for awhile, and roughly 2% Treasury yields by year-end, say these market pros

Market Extra: Brace for economic data to be extremely messy for awhile, and roughly 2% Treasury yields by year-end, say these market pros
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GUEST COMMENTARY: The left s mixed messaging during pandemic

By Scott Shellady Just last week I was invited to speak in front of a group of people. It was the first time I had that kind of opportunity since March of last year. It was in a meeting room of a larger restaurant. We had permission for 50 people. About 30 showed up as it was a cold and rainy morning in Northwest Indiana — a typical lovely spring day. I didn’t know what to expect except it was to be in front of a group of like-minded conservatives to discuss the various topics of the week. I love to speak in front of people and the last 14 months has ripped that from me.

Kelly Evans: Doing More With Less

It s not so great, obviously, if you re one of those 8.5 million workers.   The fact that we did not need those additional workers to produce pre-pandemic levels of GDP suggests that many of these jobs were already in the crosshairs of creatively destructive technological advance, Zervos wrote this morning.   In other words, those jobs may not be coming back. It s one thing for a restaurant to reopen and bring back workers. It s another if a corporate office can function with only 60% of the staff it once needed. It s why Zervos thinks the pace of hiring could actually slow this year even as the economy keeps growing, which would act as a brake on inflation (and we should note, the 10-year yield this morning is back under 1.6%). 

Kelly Evans: Dropouts

But underpinning all of this is one overarching theme: is inflation here to stay, or not? If the answer is yes, like Larry Lindsey will argue today, that implies a multitude of different things higher inequality, a smaller labor force (more dropouts), higher bond yields (if the Fed isn t super proactive about it), lower stock prices, a higher taxpayer burden, a lower dollar, etc.   If you think the answer is no, you re in more of the David Zervos camp. (Zervos will be on soon to make his case.) Zervos, and others like Komal Sri-Kumar and the Fed itself, for now think these inflation pressures will pass, that bond yields will be contained, the dollar will largely go sideways, the labor force may even rebound, stocks can continue to do well, and so forth.  

Detailed text transcripts for TV channel - MSNBC - 20180206:14:37:00

that s okay, david zervos, chief strategist at jeffries, still with us, even if the markets were exactly where they are right now, post the big drop we ve seen in the last two days, that s still a very strong market. we can t forget that. isn t that true? absolutely. we ve had an incredible run. an incredible run since the election. so trump can probably take some credit for that. we ve had an incredible run well before the election. we ve had an amazing run since 2009 when we all saw the edge of the abyss. i keep coming back to the same story line since the beginning of this show. i really think people are trying to figure out the new central bank. what is jerome powell s central bank going to do. and what is the new fed that donald trump will continue to make up with another with the vice chairman he needs to appoint. a few more governors we need to appoint. a lot of malability with this

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