The CONVERSATION strikes a note of incredulity with the publication of the latest Bureau of Labor Statistics’ monthly labor market data. The data are “total bologna,” says DICK BOVE, both erratic and hard to swallow. The establishment survey shows 339,000 jobs were “created” by the US economy, seasonally adjusted. The adjusted numbers show a whopping 930,000 jobs created. The Bureau’s household survey, meanwhile, shows 310,000 jobs lost on a

seasonally adjusted basis; 73,000 jobs lost, unadjusted. BOVE, chief financial strategist at ODEON CAPITAL GROUP, examines the data more closely, and compares it with state unemployment claims for evidence of the real health of the labor markets.

The Fed’s most aggressive rate-hiking campaign in 40 years is clearly impacting sectors of the economy to varying degrees, from the labor markets and unemployment to bank balance sheets and duration risk. “The Fed is getting the job done,” says MAT VAN ALSTYNE, ODEON co-founder and managing partner. In our current environment, BOVE says US bank’s balance sheets are “totally misleading.” And he addresses the regulatory pressure for banks to raise more equity. VAN ALSTYNE says high US interest rates are the reason for many of the present troubles at banks and in other corners of the market. (The federal funds rate is currently 5.00% to 5.25%.) Joining the CONVERSATION is JOHN AIDAN BYRNE who opens a discussion on Artificial Intelligence and the banking industry. He notes how JP Morgan is reported to be developing a ChatGPT-style software for customers.

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