Friday, June 14, 2019

Misery index (unemployment + inflation) tumbles to 1960s level without Fed rate cuts

U.S. consumers are in their best position in more than half a century even before the Federal Reserve considers interest-rate cuts, according to Yoav Sharon, a money manager at Driehaus Capital Management LLC. Sharon cited a version of the misery index, the sum of inflation and unemployment rates, in a Twitter post Thursday. He looked at the core consumer price index, excluding food and energy, which was 2% higher in May than a year earlier. Adding last month’s jobless rate brought the misery index to 5.6%, the lowest since 1966.

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