Given the employment surprise (NFP 266K actual vs. 978K expected), it would be remarkable if interest rates did not respond. Stock indices did drop, then recovered to pre-surprise trend. Five year bond yields did drop somewhat.
The simple — conventionally reported — inflation breakeven calculation might be misleading.
Using an incredibly powerful device called “the Google”, I have discovered new prototype data releases regarding the distributional aspects of real personal income. Here are some figures depicting income accruing to select household income percentiles, contributions to income growth therefrom, and Gini coefficients. These figures are from this Working Paper entitled “Measuring Inequality in the National Accounts” (updated 2020).
Euro area GDP continues to drop in Q1, while the US recovery accelerates.
Figure 1: US real GDP (blue), Euro Area 19 real GDP (red), both in logs, 2019Q4=0. Source: BEA, European Union, and author’s calculations.
The US recovery has benefited from a tremendous amount of fiscal stimulus and — finally — a reasonable pandemic response (including an effective vaccination rollout).