Why the unemployment rate matters to the "Warsh Fed"
In this brief market commentary, Mike Milligan reviews the start of the third quarter, noting that the Dow is near record highs, technology stocks are mixed, and overall volatility remains low as the market heads into the Independence Day holiday. He focuses on the upcoming June jobs report, with consensus expectations of about 110,000 non‑farm payroll additions and a 4.3% unemployment rate. This report is highlighted as the first jobs reading under Chairman Warsha’s newly‑declared data‑dependent Federal Reserve, making its interpretation especially significant for monetary policy. Milligan warns that the holiday‑shortened trading week will feature thin liquidity, meaning any reaction to the jobs numbers could be quickly reversed when markets reopen on Monday. He advises listeners not to overreact or try to trade the report, emphasizing that a prudent plan should prioritize continued saving rather than short‑term speculation. The segment is presented as educational content only, not a trading recommendation.
