Unemployment hits 50-year low in US, but inflation...
The US jobless rate fell to a 50-year low in December, which is the clearest indication yet that the economy is recovering from the crippling effects of both the Covid-19 outbreak and, more recently, the rise in global oil prices brought on by the conflict in Ukraine. But inflation is still a difficult problem. In remarks he made on friday to welcome the fresh jobs data, US President Joe Biden reaffirmed that he is aware of this.
"The report released today is excellent news for our economy and further proof that my economic strategy is effective. Since 1950, the unemployment rate has never been lower. The two years of job growth that were the strongest in history recently ended. We are also witnessing the shift to consistent and stable growth that I have been describing for months "added he. But, as Biden pointed out: "We still have work to do to reduce inflation and assist American people who are struggling to make ends meet. Nevertheless, we are headed in the right direction." According to the most current tally from the Labor Department, inflation was 7.1% for the 12 months that ended in November; a fresh estimate is anticipated later in January.
The US Fed Reserve bank began intervening in june of last year as inflation surged to a 40-year high of 8.6% and huge rate hikes of 0.75 percent, the largest since 1994, were implemented. The following several months saw further six increases of varied magnitude, the last of which being a half-percentage-point increase in December. These price increases are intended to reduce expenditure by raising the cost of credit. However, there are concerns that they could ultimately lead to output restrictions because if consumers don't buy, businesses won't have much to sell and will reduce production, which would slow the economy and bring on a recession.
"The report released today is excellent news for our economy and further proof that my economic strategy is effective. Since 1950, the unemployment rate has never been lower. The two years of job growth that were the strongest in history recently ended. We are also witnessing the shift to consistent and stable growth that I have been describing for months "added he. But, as Biden pointed out: "We still have work to do to reduce inflation and assist American people who are struggling to make ends meet. Nevertheless, we are headed in the right direction." According to the most current tally from the Labor Department, inflation was 7.1% for the 12 months that ended in November; a fresh estimate is anticipated later in January.
The US Fed Reserve bank began intervening in june of last year as inflation surged to a 40-year high of 8.6% and huge rate hikes of 0.75 percent, the largest since 1994, were implemented. The following several months saw further six increases of varied magnitude, the last of which being a half-percentage-point increase in December. These price increases are intended to reduce expenditure by raising the cost of credit. However, there are concerns that they could ultimately lead to output restrictions because if consumers don't buy, businesses won't have much to sell and will reduce production, which would slow the economy and bring on a recession.