AUGUST 8, 2022 – JOB NUMBERS ROAR WITH OVER 500,000 NEW GAINS IN JULY
The US economy added 528,000 jobs in July, twice the number expected, with the country having regained all 22 million jobs lost since the beginning of the pandemic. Unemployment fell from 3.6 percent to 3.5 percent; the unemployment number is the lowest since February 2020 and is tied for the lowest rate seen back in 1969. Analysts believe the jobs numbers indicate the economy is strong enough to let the Fed to continue to raise interest rates without pushing the country into a recession.
Recession has been on everyone’s minds since the economy showed two consecutive quarters of contraction. However, the National Bureau of Economic Research is looking at the bigger picture; which includes employment levels; and will not officially recognize a recession.
The Fed is on track to raise rates another three times this year, after already increasing rates four times already in 2022 to a benchmark rate of 2.25 percent. Traders are pricing in another 0.75 percent hike for September.