The June jobs report showed that the economy added a higher-than-expected 224,000 jobs, dissipating fears of a recession after lower-than-expected May numbers, the Hill reported. Wages also increased slightly, according to the report.
The news bolstered President Donald Trump’s re-election chances by showing that the economy remains strong after tax cuts for individuals and businesses. The GDP also continues to increase despite increased tariffs on $200 billion of goods from China.
Job growth continued in manufacturing, construction and other sectors of the economy. The economy has now been growing for nine-and-a-half straight years, since the end of the 2008 recession, but has grown faster under Trump.
“We had great numbers this morning,” the president told reporters on Friday. “And our country continues to do really well — really, really well. So we’re very happy about it. I think we’re going to — we’re going to be breaking records.”
Recession Fears Halted
May’s job numbers showed slower growth, with only 72,000 jobs added. Economists worried that the slower growth signaled a slowdown that could turn into a recession. Slower growth around the world gave credence to these fears, but they turned out to be unfounded.
Trump has been pushing for the Fed to cut interest rates to spur the economy even more, but it typically does not cut rates during times of economic growth because of inflation fears. Still, the global slowdown and continued low inflation have led the Fed to at least think about cutting rates, which have remained unchanged since January.
“If we had a Fed that would lower interest rates, we’d be like a rocket ship, but we’re paying a lot of interest and it’s unnecessary,” Trump said Friday. On Twitter, the president called the Fed “our most difficult problem.”
….As well as we are doing from the day after the great Election, when the Market shot right up, it could have been even better – massive additional wealth would have been created, & used very well. Our most difficult problem is not our competitors, it is the Federal Reserve!
— Donald J. Trump (@realDonaldTrump) July 6, 2019
White House Economic Council Director Larry Kudlow supported a rate cut as well, saying on Bloomberg TV that “it doesn’t hurt to take out an insurance policy” against a global economic slowdown that could impact our economy going forward.
An Uncertain Future
Trade uncertainties still exist, with a new round of tariffs in China still a possibility if no deal is reached and a renegotiated NAFTA sitting in the House with no action. Trump has said he’s perfectly comfortable with further tariffs on China if they won’t cooperate on a deal, and he may decide to pull out of the existing NAFTA agreement altogether if the House won’t pass his renegotiated version.
Still, Trump has taken positive steps to improve the U.S. economy. His America-first policy mindset has been of great benefit so far, and he has shown that he knows how to make the economy grow with tax cuts on individuals and businesses.
The latest report even showed that more people are re-entering the economy after a long period of unemployment, which will generate even more economic growth as those long-dormant workers become productive and start paying taxes again.
Voters have historically re-elected presidents when the economy is strong. Let’s hope that 2020 is no exception to that general rule.
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