The report by the Labor Department, on the creation of 353,000 new jobs in January, confirmed 2024 is starting vigorously for the US economy. Moreover, the January employment figure was superior to the 2023 average monthly job creation of 255,000, amounting to the creation of more than 3 million new jobs throughout last year. Additionally, in the last two years, unemployment has remained under 4 percent, despite the tightening of monetary policy by the central bank to control inflation.
With these very positive figures and assuming the vigorous performance will continue, the attention is now turned to the central bank authorities. Pressure is emanating from several sources, particularly on Wall Street, where the concern is the central bank will continue leaving interest rates unchanged.
The last statement by central bank chair Jerome Powell was in an interview transmitted last Sunday but taped on Thursday before the release of the January employment figures. In the interview with Sunday’s CBS 60 Minutes, Chairman Powell said, “We think the economy is in a good place. We think inflation is coming down. We just want to gain a little more confidence that it is coming down in a sustainable way.” (The Wall Street Journal 02/05/24). In other words, “not yet.”
*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.
