Jobs Data Indicates Economy Is Slowing - New York Times

We would bet that interests rate increases will slow, though continue to rise. The dollar will fall against foreign currencies and the economy will crash in a big way, if fuel prices spike this hurricane season, as big storms churn in the Gulf and tenions in the middle east grow worse, and stay spiked.

Fuel prices could increase to 5.00 a gallon, if everything comes together at one time.

Oh, hell, forget predictions! Junior and the Dick are in charge. It's Armageddon time.

Jobs Data Indicates Economy Is Slowing - New York Times:

"Employers added only 121,000 jobs in June, the government reported yesterday, indicating that the economy was slowing under the combined weight of high energy prices and rising interest rates.

Employment Situation Report (pdf) But the government also reported that hourly wages rose at their fastest pace in five years, while the unemployment rate remained at 4.6 percent.

This suggests that the labor market remains tight and may yet spur higher inflation.

The disparate data underscored the uncertain economic situation facing the Federal Reserve as it ponders whether to continue raising interest rates over the summer to cool the economy further or whether it is time to pause. Over the last two years, the Fed has steadily increased the benchmark federal funds rate from 1 percent to 5.25 percent.

'Today's numbers only tighten the vise the Fed finds itself in,' said Carl Tannenbaum, chief economist of LaSalle Bank in Chicago. 'The challenge is not to be overly restrictive as growth slows and still attentive to inflation risk.'"