Bond Buying Hinges on Jobs Report
This Friday's payroll report will hopefully answer some important questions. Is the recent pickup in hiring gaining momentum? Or will the specter of the fiscal cliff cause employers to hold off on new hires? And how will any of this impact the Fed and, therefore, interest rates? Since where any given payroll number comes out is anyone's guess, today's column will focus on how the recent budgetary debate might be influencing hiring.
It is easy to fall into the mental trap of assuming that macro events impact everyone in a similar manner. To wit, let's think about the fiscal cliff from the perspective of a medium-sized business owner. There are two basic concerns. One is that government spending may fall, especially defense spending. If your business is related to the defense industry, even indirectly, this is certainly a good reason to hold off on hiring. The other is that your personal tax rate will go up. This one is a little trickier....460 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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