US DATA: Core Services Inflation Remains Elevated, Mixed PCE Implications

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National Economic Council Director Hassett spurred a jump in Treasuries ahead of Wednesday's nonfarm payrolls as Bloomberg ran a headline "*HASSETT: SHOULD EXPECT SLIGHTLY LOWER JOBS NUMBERS" that some took to suggest he was signaling a disappointing print was upcoming. However his full comment on the labor market on CNBC sounded less of a reference to this week's report and more to the broader trend:

• "There's a pretty big decline in the labor force because of illegals leaving the country. And so the breakeven job number is quite a bit lower than it was under Joe Biden, when there were people basically coming across the border willy nilly. And so I think that you should expect slightly smaller job numbers than/that [hard to tell if he was saying "that" or "than"] are consistent with high GDP growth right now, and that one shouldn't panic if you see a sequence of numbers that are lower than you're used to, because again, population growth is going down and productivity growth is skyrocketing. It's an unusual set of circumstances. "
• Recall that the White House is only supposed to get the jobs data the day before the release, so in theory Hassett shouldn't be privy to the January numbers which have been delayed to Wednesday.