The state of the economy is seizing Americans’ attention as the election season has intensified. Although inflation has slowed, to 3.5 percent from 9.1 percent in 2022, prices are well above their pre-pandemic levels.
The job growth bolsters hopes that the economy can vanquish inflation without succumbing to a recession in the face of high interest rates.
Despite lower inflation, a healthy job market and a record-high stock market, many Americans say they are unhappy with the state of the economy — a sentiment that is sure to weigh on President Biden’s bid for re-election.
The employment numbers suggest the economy is shrugging off the highest interest rates in two decades.
There is growing optimism that the Federal Reserve is on track to deliver a rare ‘soft landing’ — raising borrowing rates enough to cool growth, hiring, and inflation yet not so much as to send the economy into a tailspin.
December’s job gain exceeds the 173,000 that were added in November.
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