What it means is that Greenspan does not believe the 32 K new jobs. On the other hand if the figure of 600 000 + jobs is true, and the news of the very large productivity increase (but also increase in production costs) then this raise is probably needed.
As you say it is going to be interesting to watch the media and their poodle-economists spin this. Stagflation maybe??
Interesting to watch, but uninformative. The mainstream news media has deteriorated to such a point that now they just throw random theories up against the wall to see if anything sticks as if they are all crazed spaghetti chefs.
A more rational approach to explaining this sort of rate rise might touch on the Fed's view of the declining Dollar and rising oil prices, however.
5 Legislative Days Left Until The AWB Expires
Probably. The productivity report today indicated that compensation costs are up. That indicates that employment is much better than reported.
My prediction: after the election, regardless who wins, a very sharp recession, followed by stagflation thru the end of the decade.
these rates aren't going up because greenspan is worried about inflation, or because he gives a crapola about deficits or americans holding cash...they're going up because the foreign nationals who buy our national debt are signalling "enough already".
It works like this: they buy our increasingly worthless paper to keep their own currencies weak, so they can keep exporting to the US. But even the Japanese and the Chinese have their limits. I suspect it's been reached.