Publications

The Job Openings and Labor Turnover Survey (“JOLTS”), a closely-watched measure of labor market health, indicated there were 6.6 million job openings at the end of March, a record high.  Hires edged down to 5.4 million while the quits rate inched up to 2.3%.  BLS Report

The Wall Street Journal reports that Federal Reserve Chairman Jerome Powell said that the Fed will communicate its interest rate policy as clearly and transparently as possible. Powell also said that the role of U.S. monetary policy in influencing capital flows into emerging markets was overstated, and that a stronger global financial system could help avoid “policy whiplash.” WSJ

The Wall Street Journal reports that the Trump administration is seeking an amendment to the North American Free Trade Agreement that would require a wage floor for workers in the automobile manufacturing sector. The proposed change would require 40% of the content of any duty-free autos to be produced by workers earning at least $16 per hour, which would represent more than double what many Mexican auto parts manufacturers make on an hourly basis. WSJ

In a Financial Times op-ed, former U.S. Treasury Secretary Lawrence Summers argues that the threat of secular stagnation is not gone. Summers contends that while economic growth may pick up in the near-term, the boost to growth will largely be because of stimulative fiscal and monetary policies, not due to improving fundamentals of the U.S. economy. FT

The Wall Street Journal reports that the Trump administration has demanded a $200 billion reduction in the U.S. trade deficit with China by the end of 2020. The U.S. also demanded that China slash tariffs on U.S. imports, not target U.S. farmers, and also cut subsidies to key high-tech Chinese industries. WSJ

The Financial Times reports that President Trump has sent key trade advisers to China in the hopes of avoiding a trade war. The U.S.’ goals include a significant reduction of the U.S.-China trade deficit and a tempering of China’s “Made in China 2025” initiative, which provides massive government fiscal stimulus to ten key hi-tech sectors. FT

Jon Sindreu of the Wall Street Journal writes that central banks will continue to have outsize power over financial markets in years to come. Sindreu argues that the detailed communications that central banks offer about the path of rate hikes will continue to guide market movements, especially as inflationary pressures continue to mount in the economy. WSJ