They say they are strong results, but when you lose full time jobs and gain part time jobs, and most jobs are for migrants or government related, this is a failure in any person’s book. Other than our Soviet government in charge, faking the data daily now.
Headlines blared on Friday as a report revealed that employers added 272,000 new jobs in May, surpassing economists’ predictions by thousands. However, the Bureau of Labor Statistics’ May report also showed the unemployment rate inching up to 4% for the first time in over two years, ending the best sub-4% run since the Vietnam War era.
🇺🇸 Unemployment rate in US continues to rise, ticks up to 4%
In May, 263k foreign-born workers joined the labor force in the US – while 171k native-born American workers left… Bidenomics
RiseGS pic.twitter.com/3ZTQgUWwfI
— dana (@dana916) June 7, 2024
This apparent contradiction in employment data raises questions about how Federal Reserve Chair Jerome Powell and the rest of the Fed’s policymaking committee will interpret these figures in their upcoming meeting.
Federal Reserve Interest Rate Decision
The Federal Reserve is set to announce its latest interest rate decision on Wednesday. According to the CME FedWatch Tool, almost no one predicts that the Fed will cut rates this week. Jobs are just one part of the broader economic picture the Fed will be evaluating. The committee will also consider other key economic indicators, such as the consumer price index (CPI), which, although not the Fed’s preferred measure of inflation, will be a significant data point when released on Wednesday morning.
Key Economic Indicators
1. Unemployment Rate: The U.S. unemployment rate rose to 4% in May, up from 3.9% in April. This slight increase could suggest that employers are becoming more cautious about hiring. Despite this rise, the rate remains below the 10-year monthly median rate of 4.3%. The job market had seen a similar strong performance in 2020 before the pandemic caused widespread job losses.
2. Gross Domestic Product (GDP): The U.S. economy produced $22.7 trillion worth of goods on an inflation-adjusted annualized basis in the first quarter of 2024, resulting in a GDP growth rate of 1.3%, down from the initially reported 1.6%. This slower-than-expected growth may reflect the impact of the Fed’s interest rate increases on businesses and consumers.
3. Inflation: Inflation has been above the 10-year median of 2.1% for over three years. The Fed aims to keep inflation at 2%, which is considered “low and stable.” The U.S. inflation rate, as measured by the consumer price index, dropped to 3.4% in April from 3.5% in March. The upcoming May CPI report will be crucial for assessing inflation trends. This doesn’t mean prices are going down, only going up more slowly they claim. Meanwhile in reality land we are spending 50 and 65% more for the same items in the grocery story since Biden was installed into the White House like a bad toilet.
4. Consumer Spending: Consumer spending accounts for about 70% of the U.S. economy. In April, retail sales were $705 billion, unchanged from March. A continued slowdown in consumer spending could further impact GDP growth in the second quarter.
US CPI data has become the focus. Can it rekindle the #Fed‘s expectations of rate cuts? Can gold regain its upward momentum?#Xauusd
The Fed will release a summary of interest rate decisions and economic expectations. Powell’s voice at the press conference is expected to be… pic.twitter.com/n790lrbTyg— NAMY (@NAMI__FX) June 10, 2024
5. Gasoline Prices: Gas prices, though a small part of most budgets, significantly affect consumer sentiment. Recently, gas prices have fallen by 15 cents per gallon since late April. However, with the summer driving season approaching, prices may rise again. They don’t want to mention how it is way up since Biden took office, all by design.
6. Consumer Sentiment: The University of Michigan’s consumer sentiment index has been gradually improving since May 2023 but remains volatile. Inflation and the Fed’s interest rates have kept consumer sentiment relatively flat in recent months.
7. Mortgage Rates: While the Fed’s interest rate decisions don’t directly impact mortgage rates, they influence the broader economy, making home buying more challenging. Mortgage rates, which peaked at 7.79% in the fall, have since dropped but remain above the 10-year median of 3.95%. High mortgage rates have slowed existing home sales and increased home prices due to limited inventory.
8. Existing Home Sales: Existing home sales, a major component of the housing market, have declined as mortgage rates rose. In 2023, annual home sales fell to 4.09 million units, the lowest since the financial crisis. Higher home prices and limited inventory have contributed to this decline.
9. Stock Market: While not a direct reflection of the economy, stock market movements indicate investor sentiment. Concerns about a recession sparked by the Fed’s interest rate hikes have eased since October 2022. The S&P 500 index has risen nearly 50% since then, driven by strong economic data and optimism about a potential soft landing for the economy.
Key #Macro Events to Watch This Week:
1.) May #CPI Inflation data (Wednesday)
Higher-than-expected inflation data could shock market participants, further reducing the odds of a Federal Reserve rate reduction over the summer.
2.) #Fed Interest Rate Decision (Wednesday)
There… pic.twitter.com/vn48dkrtg7
— CryptosRUs Analysis (@CRUAnalysis) June 9, 2024
The U.S. economy presents a mixed picture with strong job growth contrasted by a rising unemployment rate and varied economic indicators. The Federal Reserve’s upcoming interest rate decision will be closely watched, as it navigates the complex interplay of employment, inflation, and consumer sentiment. While the economy continues to grow, challenges remain, requiring careful analysis and policy adjustments to sustain stability and growth.
The growth though is accounted for by government spending, which is actually a liability to U.S. taxpayers. Which means Biden is trading massive debt for supposed economic growth, that is 100% fueled by massive debt making our situation worse every week that goes by, In fact, the criminals in charge are now adding 1 trillion in debt every 100 days. Yes- that’s right – 1 trillion in debt as they send our money that does not exist, all over the world, and support an army of illegals here killing, raping and stealing. This is Joe Biden and the Democrats having their way.
Major Points:
- The U.S. job market added 272,000 new jobs in May, surpassing economists’ expectations, but the unemployment rate rose to 4% for the first time in over two years.
- The Federal Reserve is set to announce its latest interest rate decision, with almost no one predicting a rate cut this week.
- The U.S. economy grew at a slower-than-expected rate of 1.3% in the first quarter of 2024, down from an initially reported 1.6%.
- Inflation has dropped to 3.4% in April from 3.5% in March, but it remains above the Fed’s target of 2%; the May CPI report is due on Wednesday.
- Consumer spending, mortgage rates, and existing home sales show mixed trends, with spending flat in April, mortgage rates high but down from peaks, and home sales declining due to limited inventory and high prices.
RM Tomi – Reprinted with permission of Whatfinger News
