Fed Will Cut Due to Slowing Growth Evident in Jobs Data, Pimco's Wilding Says

The transcript discusses economic forecasts by PIMCO, focusing on payroll numbers and their implications for the economy. It highlights a slowdown in private payroll growth and the significance of aggregate hours as an economic indicator. The discussion also covers wage growth, noting a secular decline in productivity affecting wage increases. The market's reaction to job reports and the likelihood of a Fed rate cut are analyzed, considering the unemployment rate and participation trends.

What was the anticipated headline number for private payrolls, and how did the actual figure compare?

• Anticipated 1:20, actual 1:35

• Anticipated 1:35, actual 1:20

• Anticipated 1:15, actual 1:20

• Anticipated 1:20, actual 1:15

What is the significance of aggregate hours in understanding economic activity?

• They indicate the number of jobs available

• They reflect the total hours worked and productivity

• They measure the total wages paid

• They show the number of people unemployed

How did the service sector's aggregate hours perform in the report?

• They were significantly positive

• They were slightly negative

• They showed no change

• They were highly volatile

Why might wage growth not be as high as expected despite low unemployment?

• As a result of higher inflation rates

• Owing to a rise in private payrolls

• Because of increased government hiring

• Due to a decline in productivity growth

What market reaction is anticipated due to the jobs report's indication of economic weakness?

• A potential Federal Reserve interest rate cut

• An increase in government spending

• An increase in interest rates

• A decrease in stock market prices