To control the rising inflation in America, the US Central Bank Federal Reserve is increasing interest rates continuously.
Bank Of America : Like the whole world, now the people of America are also facing the brunt of inflation. To control the rising inflation in America, the US Central Bank Federal Reserve is increasing interest rates continuously. Bank of America says that the effect of the increase in interest rates will start showing from the beginning of next year. In the coming times, about 175,000 people are at risk of becoming unemployed every month. Let us tell you that the job market in America remained strong in September, but this situation may change soon. With the Fed Reserve increasing interest rates aggressively, the demand for everything may soon be affected.
Bank of America said in a report on Friday that job growth is likely to be halved in the fourth quarter of the year. The Fed Reserve’s measures against inflation could hit non-farm sector jobs early next year, threatening the loss of about 175,000 people every month in the first quarter, according to the report for the entire year in 2023. You may have to lose your job.
unemployment rises in america
According to a CNN report, Michael Gapon, Head of US Economics at Bank of America, said that the first half of next year may see a recession. According to data released last Friday, the US added 263,000 jobs in September, despite the slowing of the jobs market. The unemployment rate in the country is 3.5 percent, which is the lowest level since 1969, but Gapon says that the unemployment rate in the country can reach 5 to 5.5 percent in the next one year. However, the Fed has projected it to be 4.4 percent next year.
Rapid rise in interest rates
In order to control inflation in America, the Fed Reserve is increasing the interest rates at the fastest rate in the last four decades. Fed Reserve officials say that their goal is to control inflation, even if the economy gets stuck in recession. Gapon said that the weakness in the labor market could remain for six months. Although the good thing is that everyone believes that the unemployment rate will not be like in 2020 or 2008. In April 2020, the unemployment rate in the country had reached 15 percent.
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