The American economy added a very encouraging 223,000 jobs last month. This caused the unemployment rate to fall to a seven year low of 5.5 percent. The low percentage was the good news because the rate fell in some part because a certain percentage of people stopped searching for jobs. Additionally, the total for the two months prior to this report were revised downward. However, this is often considered political spin by those that seek to downplay the glowing report. A better measure for determining if this is a good report is by Wall Street fears that the Fed will raise interest rates because of good jobs reports like these.
If the effects of a good job report like this one is inherently horrible like political opponents of democrats would have people perceive, the Fed would not consider a hike because it would be detrimental to future growth. That’s what Sender and others have been reading about. The interest rates have been kept artificially low because of the economic downturn and raising rates will only occur when the Fed feels that America is strong enough to handle the rate hikes. This report is also detrimental to republicans who must paint the economy in a bad light in order to malign the current administration in efforts to thwart Hilary’s chances in the upcoming election. Since the economy is robustly rebounding, it will more likely be a boon to Hillary’s campaign and Obama’s legacy.