Today's jobs number (and revisions) are sparking some initial vain hope that SepTaper is delayed and providing enough 'optimism' that Fed spice will flow just a little longer. However, as we have noted numerous times, the Fed is cornered and has to taper for four more critical reasons (sentiment [2], deficits [3], technicals [4], and international resentment [5]) and Obama has already confirmed that the Fed will be Tapering 'gradually'. This leads us to the Fed's next 'tool' - forward guidance.
Explaining to the world how they will keep rates lower for longer and longer, however, in the face of the following chart suggests either, i) the Fed has zero interest in anything but feeding easy money to the banking system, and/or ii) jobless claims data has become less than irrelevant.
[6]
We suspect both.
Chart: Bloomberg