The U.S. Labor Department reported the economy created 114,000 jobs in July and the unemployment rate came in at 4.3%, it was 4.1% in June. It was the 42nd straight month of positive job growth. The pundits were wrong again on the job numbers as usual. The Feds kept interest rates at the current level and continue to act in a negative way despite a good overall economy.
A comparison of Trump's record over the same time period finds that in July 2020 the unemployment rate was 10.2% and the economy still had not recovered all the jobs the economy lost due to the economic recession and COVID. And when Trump left office 6 months later the economy lost 2.7 million jobs over his term in office. It was only the second time an administration left office losing jobs since the great depression of 1929 under republican president Herbert Hoover when 6,000,000 million jobs were lost.
The Feds are still in denial about the economy and its strength and have allowed interest rates to stay high despite the cost to the consumer and the economy. The rates should have been lowered long ago to meet the moment. The so called economic experts who urged the Feds to raise rates high and fast over two years ago to fight inflation have no clue or economic sense. If a recession takes place, they will be the ones who lit the fuse.
July's job numbers are down but still in positive territory and one month is no indication of things to come. The unemployment rate is still in a historical low position and the Commerce Department recently reported employer's ads have openings for 8.2 million jobs. The Feds have good reason to reduce interest rates NOW and not wait until September.
This commentary written by Joe Lorio
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