Cracks start appearing in the US job market

At the latest FOMC press conference, Powell sounded very hawkish.

He said the US job market looks very solid because the unemployment rate remains low, yet this is more of a supply story than anything else.

The unemployment rate is low not because of strong job creation, but rather because the supply of labor has been trimmed hard by the strict immigration policies.

No supply, no demand for labor = frozen, not solid job market.

Todays NFP numbers represent a clear warning signal for the hawkish stance most FOMC members still deploy.

After massively negative revisions, the US has now added only 35k jobs per month over the last 3 months - thats arguably a very, very low number that signals anemic demand for labor.

Tariffs are starting to eat into real consumer spending and companies margins, and jokes aside the risk is rising.

Powell might actually be Too Late.