Joe Biden assured that the risk of default is the biggest threat to the recovery of the United States

President Joe Biden warned this Friday that the dispute with Congress over the increase in the debt ceiling of UNITED STATES it is the “greatest threat” to the country’s economy.

Biden said the US economy is recovering, inflation is gradually coming under control and jobs data shows Americans are regaining optimism.

“Our economy is moving in the right direction,” Biden said during the White House, noting that he was confident in reducing a still high inflation. However, he warned that a dispute over raising the debt ceiling of UNITED STATES represents “the greatest threat” to the economy.

The unemployment rate in the United States rose by two ticks in February and stood at 3.6%, according to data released this Friday by the Bureau of Labor Statistics (BLS).

In the second month of the year were created 311,000 jobs206,000 less than in January, at a time when the Federal Reserve is closely watching the effects that interest rate hikes – approved to reduce inflation – are having on economic developments and more particularly on the stock market. work.

This rise in the unemployment rate comes after three consecutive months of decline and could reflect the start of an easing in the labor market that the Fed anticipates as a result of its restrictive monetary policy.

Based on this figure, and the February inflation which will be known next week, the Federal Reserve will decide the amount of the next rate hike it will announce at the end of the next meeting of its Open Market Committee. , which will be held between March 21 and 22.

While still a strong number, the 311,000 jobs created is well below the more than half a million (517,000) created in January, and also below the average job creation in 2022. (401,000).

The number of unemployed thus rises to 5.9 millionin a month in which there was “significant increases” in job creation in leisure and hospitality, retail, government and healthcare. However, jobs have been lost in the transportation, warehousing and information sectors.

The BLS also revised last year’s figures and noted that the total nonfarm employment level for March 2022 had been revised upward by 568,000, meaning that half a million additional jobs were created last year compared to what was counted.

According to data released today, in January the average hourly wage of all employees in the non-agricultural private sector increased 10 cents, or 0.3%, at $33.03 per day. On an annual basis, average hourly earnings increased by 4.4%.

These data are published in a delicate economic context, when all eyes are on the possible consequences of a rise in rates on the American labor market.

Last month, the Federal Reserve announced its eighth consecutive hike and they are now in a range between 4.5% and 4.75%, the highest figure in 16 years.

The Fed has warned that while job creation remains one of the regulator’s key mandates, it is likely that over the next few months the labor market is suffering.

(With information from EFE)

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