Your Money

The S&P 500 jumped 1.5% on Friday and is now up 11.5% this year after a strong headline jobs report with signs of moderating wages. (Last week, we posted how seven stocks account for the entire gain while the other 493 are essentially even.) Nonfarm payrolls increased 339,000 in May, and the US has added 1.57 million jobs this year, a 2.5% annualized growth rate. In the past year, total jobs have increased by 2.7%.

One would think that with 2.7% more people working, the economy would grow by at least that much, yet, real GDP is only up only 1.6% over the past year and rose just 1.3% at an annualized rate in the first quarter. In other words, productivity is falling. At the same time that AI is making so many people think technology will lift profits and economic activity, the actual data on the economy say the US economy is pumping the brakes.

These figures highlight the challenge for Fed Chair Jerome Powell to keep the central bank’s rate-setting committee united around the idea of “skipping” a rate increase this month. Officials who already favored a rate rise in June are likely to be more convinced of the need. But some others, who have argued that the central bank should slow down rate rises to study the effects of past moves, could still lean toward skipping a June increase and moving rates up in July if economic activity remains solid.

Jobs Report Is Unlikely to Resolve Fed Rate Debate
by Nick Timiraos

Your Life

This video tells of how criminals stole a victim’s entire digital life in a matter of minutes. A woman is using her phone, and it is immediately stolen. Her phone is open, so the thief changes her password, blocking her from everything in her life. Passcodes on iPhone enable access to passwords stored in the password manager allowing further access to your virtual wallet, bank accounts, iCloud, app store purchases, text messages, photos, and more. This is a growing concern. There are hundreds of cases in NY, but there’s no actual data yet on how prevalent this crime is. iPhones, in particular, are targeted due to higher resale value, but other mobile phones can be targeted. Strengthen your password with longer, more complex passwords, screen time protection, and reputable password management apps.

Criminals Are Using iPhone Passcodes to Take Over Phones in Minutes
source Wall Street Journal

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