Good news for Biden in November jobs report
The US Bureau of Labor Statistics released the November jobs report on Friday showing that the US economy continues to perform strongly. Non-farm payrolls increased by 263,000, higher than the 200,000 that had been expected. Unemployment remained unchanged at 3.7%.
Wages also surpassed what analysts had forecast increasing 5.1% year-on-year, half a percent over what had been expected.
While many will be happy with these numbers showing that the US is not headed for a recession, Wall Street didn’t take the news well. The numbers could weigh on the Federal Reserves intention to pivot on their aggressive rate hiking policy over the past several months.
Policymakers may continue to jack up interest rates and keep them higher for longer than the markets would like. If they stay too high, for too long though there is the risk that that could tip the US into a recession.