Solid Economy

The Washington Post plays it surprisingly straight on the latest economic figures. They report that the job market is good and that wages are increasing.

Unemployment went down and paychecks went up last month, the government said yesterday, and it added that job growth for the year ending in March may have been far stronger than previously thought.

The announcements were greeted warmly by the White House — and less so by the financial markets. Stock and bond prices fell amid fears the tight job market, by adding to inflation, will compel the Federal Reserve to hold interest rates steady or even raise them to slow economic growth. Many traders had convinced themselves that the Fed would cut rates early next year, but that looks increasingly unlikely.

Frankly, Wall Street's reactions to most news is the opposite of what you'd expect, but that's another discussion entirely. Nonetheless, there is a positive economic picture out there, despite the distortions by politicians and partisans.