>>20935455>>Unemployment going up 1% is bad even though it's literally what the Fed has been trying to do for over a year>>Higher unemployment helps them reach their criteria for cutting rates>>Rate cuts = easier money>So looser monetary policy is somehow bearish now?The concern is the velocity at which it is increasing - once you start reaching a certain "speed" then it rapidly snowballs and spikes up huge - things can fall apart faster than you can imagine
>pic relatedhttps://fred.stlouisfed.org/serveres/UNRATEyou see how before recessions we see a big uptrend / the beginning of the uptrend, then it suddenly goes more vertical
the market has been pricing in this "vertical" move
