Why Does A Good Job Report Bad For The Economy?

Question

I understand why increasing interest rates can negatively affect the economy, but why would the Feds raise the rate because of the positive jobs report?

I always assumed that more people employed means more discretionary spending leading to more corporate profits.

In: 7

Answer 1

It’s not directly bad. However it means that the Federal Reserve is more likely to raise interest rates, which is bad for stocks since their performance is inversely proportional to interest rates