The latest jobs report confirms that the “on switch” for job creation has finally been flipped. This fact was obscured somewhat by bizarre seasonal factors at the turn of the year, which I mentioned in this space at the time. The good news in this report was broad based, suggesting that we can look forward to a pretty steady and positive level of job creation for the foreseeable future. The bad news in the report is just that this liftoff significantly increases inflation risks. Inflation is already accelerating, and the strong job market will magnify that. The Fed is going to have a tricky few months.