Fed Sees Labor Market Deteriorating At Fastest Pace In 7 Years

Last month's major divergence between payrolls and The Fed Labor Market Conditions Index (LMCI) has closed somewhat with the collapse in jobs on Friday. However, as this morning's LMCI print at -4.8 indicates, labor market conditions in the US are deteriorating at their fastest pace in 7 years.

The 19-factor labor market conditions index developed by The Fed is not singing from the same Koombaya "everything is awesome" hymn-sheet that The White House would prefer...

The -4.8 print was considerably worse than the -0.8 expectation.

Is it any wonder the market-implied labor-focused Yellen Fed rate-hike odds are plunging...