While the U.S. economy is continuing to add new jobs, Congressman Bob Good (R-Va.) sees warning signs for the economy going forward.
On Friday, the U.S. Labor Department reported that the United States added 253,000 jobs in April, beating a 180,000-job forecast for the month. This comes at the same time the U.S. Federal Reserve continues to raise interest rates in hopes of slowing inflation.
Raising the interest rate is meant to increase the cost of borrowing money in order to disincentivize demand. A drop in consumer demand typically helps to lower prices of goods and services.
The strong April jobs report may be a double-edged sword as it indicates that the labor market is strong but that the Federal Reserve’s monetary policies haven’t done enough to stifle consumer demand in this inflationary economy. Good, who serves on the House Budget Committee, said that maintaining the Federal Reserve’s current track with interest rates will make life tougher for U.S. consumers….