For months, the "vibes" — anecdata, CEO surveys and the like — have pointed to a cooldown underway in the U.S. labor market. The official data, especially on growth in employers' payrolls, has mostly not.
Why it matters: In October, they finally converged. With the new jobs numbers, there's little doubt that the labor market is shifting into a lower gear. That should diminish inflation pressures and make the Fed more confident it is done raising interest rates.
Fed chair Jerome Powell believes the U.S. economy is capable of growing faster than usual right now, without inflationary pressure.
The big picture: That was the subtext — and, in some spots, explicit text — of his comments after Wednesday's decision. It is also fueling a surge in stock and bond markets over the last 24 hours.
