Strong Economy Endures Despite Fed Interest Rate Increases
Washington, D.C. (January 4, 2019)—While it may be a new year, the economy remains strong and vibrant according to the latest Labor Department report, says the Job Creators Network.
“Despite the decision by the Federal Reserve to raise interest rates, the fundamentally sound pro-growth policies instituted by the Trump administration and previous Congress are fueling this powerhouse economy,” said Alfredo Ortiz, JCN President and CEO. “Main Street businesses across the country continue to take advantage of lower taxes and less regulations—an environment that is undoubtedly spurring business growth.”
According to new data released by the Bureau of Labor Statistics, 312,000 jobs were created in December—far surpassing expectations—and wages increased by 3.2 percent year-over-year—a rate hit only one other time since April 2009. Moreover, the labor force participation rate ticked up to 63.1 percent, which contributed to a slight rise in the unemployment rate, hitting 3.9 percent. Conversely, the Hispanic unemployment rate has dropped to its record low.
“However, economic challenges lie ahead if the Federal Reserve keeps course with proposed rate hikes,” continued Ortiz. “Continuing to raise interest rates will slow down the economic momentum we’ve built up over the past year, and for what? Inflation remains at reasonable levels and it’s clear from today’s report the economy has not yet reached its peak.”