Friday’s disappointing jobs report will…worsen Washington’s highly polarised politics. Already, initial reaction from there suggest that, rather than act as a catalyst to bring the political class together to address a persistent national problem, the numbers are fueling conflicting political narratives and greater polarisation ”“ thereby reducing further the probability of any timely convergence towards the type of common analysis and common vision that are needed.
With virtually all government entities essentially paralysed by political gridlock, the Federal Reserve will soon confront yet another lose-lose policy dilemma. Does it renew its unconventional activism using inevitably blunt tools that involve a growing set of collateral damage and intended consequences; or does it stick to the sidelines and watch the economy weaken further in the summer?
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