Washington, D.C. (November 7, 2018)—If Americans want to keep the strong economy, reaffirmed today by the Labor Department report, interest rates should remain unchanged, said the Job Creators Network (JCN).
“The endurance of the U.S. economy continues due to business-friendly policies,” said JCN President and CEO Alfredo Ortiz. “Month after month jobs continue to be created and essentially everyone looking for a job is finding one. In fact, there are about one million more jobs available than workers to fill them. The goal of policy officials should be to keep this train rolling.”
According to the new data released by the Bureau of Labor Statistics, 155,000 jobs were created in November and the unemployment rate remained at 3.7 percent. Moreover, even though hiring has slowed, wages increased by 3.1 percent year-over-year—the highest rate in a decade. Wage growth is finally playing catch up after the negative wage inflation that took place during the Obama administration, and thus should not ring alarm bells at the Fed.
“However, the strong economy is in jeopardy,” continued Ortiz. “If the Federal Reserve goes through with announced interest rate hikes, both consumers and businesses will feel the pinch. Consumers will end up paying more for their mortgages, car loans and credit cards, which will negate all the positive wage increases workers are experiencing. In addition, businesses will invest less—all of which will slow down the economy. The Federal Reserve should be encouraging economic growth, not slowing it down.”