Written By: Carissa Gurgul
According to the article Fed’s Powell says jobs market not too tight, repeats case for gradual rate hikes by Lindsay Dunsmuir, Fed Chairman Jerome Powell predicts that the unemployment rate will continue to decrease while wages stay moderate.
A major concern is that this record breaking unemployment rate will curb economic growth, as a lower inflation rate is associated with falling wages and prices, and, therefore, a weak economy, and since the inflation rate is determined by the annual change in price stability and maximum employment.
However, Powell claims that the United States is not near a point of worry, as “The U.S. unemployment rate stands at an 18-year low while inflation has largely met the Fed’s 2 percent goal after six years of undershooting.”
Below is an overview of the United States Gross Domestic Product (GDP) growth rates, showing that January 2018 landed at the desired 2%.
At SCPa Works, one of our main goals is to provide employment to those who are currently unemployed or are seeking to develop their careers in any way. To do so, we provide training and educational resources to ensure job qualifications are met, resulting in our clients having a wider range of potential careers. In this way, we are contributing to both personal and economic growth, which, as noted above, is necessary in maintaining a stable economy.
“Board of Governors of the Federal Reserve System.” FRB: IFDP Notes: The Effects of Demographic Change on GDP Growth in OECD Economies, Board of Governors of the Federal Reserve System (U.S.), https://www.federalreserve.gov/faqs/economy_14400.htm.
Dunsmuir, Lindsay. “Fed’s Powell Says Jobs Market Not Too Tight, Repeats Case for…” Reuters, Thomson Reuters, 20 June 2018, https://www.streetinsider.com/Fed/Feds+Powell+says+jobs+market+not+too+tight%2C+repeats+case+for+gradual+rate+hikes/14325594.html.
“United States GDP Growth Rate | 1947-2018 | Data | Chart | Calendar.” Haiti Exports | 2008-2018 | Data | Chart | Calendar | Forecast | News, https://tradingeconomics.com/united-states/gdp-growth.