Growing US Job Market to Make 'Americans Feel Worse’

US inflation remains above the Federal Reserve's 2% target and is currently running at about 3.7%.

A US broadcaster has reported that recent positive news about the job market in their country may finally make "many Americans feel worse."

According to the latest report from the Bureau of Labor Statistics, the United States economy experienced a surge in employment last month. Approximately 336,000 jobs were added, marking the most substantial monthly increase since January.

Meanwhile, inflation "continues to rise faster than anyone would like," the broadcaster continued. The country's inflation, which is still above 3%, is "unhealthy" for the U.S. economy, which is seen as "lousy" by "so many people," the broadcaster said.

Moreover, the news outlet added that prices in America, including those for gas and food, will "continue to rise faster than anyone would like," with paychecks "barely keeping pace."

“When you see gas prices at $3.75 on average (and above $4 in plenty of places across the country), mortgage rates above 7% and at a 23-year-high, food prices going up at the grocery store, and a restart to student loan payments for millions of Americans,” one can understand why a majority of local respondents say US President Joe Biden’s policies have made economic conditions worse, the outlet reported referring to its own poll conducted by SSRS.

The broadcaster pointed out that in the last year, paychecks have experienced a modest growth of 4.2%, the slowest rate of increase since the onset of the COVID-19 pandemic back in 2020.

Finally, credit card interest rates are "well north of 20%, a two-decade high," the news network pointed out, adding, "People who carry a balance from month to month are paying a hefty premium in interest, which means it will take even longer to pay off what they owe."

Brian Coulton, the chief economist at ratings agency Fitch, expressed to reporters that the steady growth of jobs in the US would "keep upward pressure on wages, making it more likely that the Fed has further to go in raising interest rates".

Recent quarterly projections from the US Central Bank indicate that the Fed's benchmark overnight interest rate could potentially increase once more this year, reaching a range between 5.50% and 5.75%.