Morning Meeting: U.S. Economy After Good Payrolls Report

Ethan Harris from Bank of America Merrill Lynch discusses the US economy following a positive jobs report. Despite a slowdown in job growth, the labor market remains healthy. Market reactions show equities rallying, but bond yields remain low due to global conditions. The bond market is disconnected from economic fundamentals, with low interest rates persisting. The US economy is experiencing slow growth, but inflation is expected to rise as full employment is reached. In the UK, Theresa May's potential leadership is seen as market-friendly, aiming for strong trade relations with Europe.

What was Ethan Harris's initial reaction to the jobs report?

How did the bond market react to the jobs report according to Ethan Harris?

What does Ethan Harris mean by the term 'drift economy'?

What does Ethan Harris believe about the future of inflation in the United States?

What are the implications of Theresa May becoming the next Prime Minister for negotiations?