Jobs Report Makes 50 Bps Rate Hike 'Even Bet': Kroszner

The video discusses the potential for a 50 basis point rate hike by the Federal Reserve, considering the strong labor market and the lack of significant downside revisions. It highlights the importance of the upcoming inflation report in influencing the Fed's decision. The market's reaction to recent economic data, such as the decline in average hourly earnings and the rise in the unemployment rate, is analyzed. The video concludes with a discussion on the future economic outlook and the factors that may influence the Fed's policy decisions.

What are the implications of the recent changes in average hourly earnings and unemployment rate for the Fed's policy?

In what ways might the upcoming inflation number influence market expectations regarding the Fed's actions?