Fundstrat‘s Head of Research Tom Lee predicts a Federal Reserve policy pivot following Goldman Sachs’ warning about historic job data revisions, as July employment figures reveal the largest two-month downward adjustment outside recessions since 1968.
Goldman Flags Historic Job Data Revisions
Goldman Sachs economists highlighted that recent job report revisions represent the most significant adjustments in 57 years outside recession periods. The investment bank’s research note warned clients to expect additional large revisions in upcoming reports.
The net downward revision of 258,000 jobs for May and June payrolls marked the largest two-month adjustment since 1968, according to Goldman’s analysis. These revisions were split between public and private sector positions, with state and local government cuts accounting for 109,000 of the total reduction.
Fed Pivot Arguments Gain Momentum
Lee responded to CNBC’s Brian Sullivan on X Sunday, writing: “Fed has a dual mandate: jobs and inflation. Goldman notes these job report revisions so large, haven’t seen in 57 years. This strengthens the case labor market is further away from Fed mandate than Fed realizes.”
Lee concluded his assessment by stating, “To me, reads as Fed …