Mortgage Blog

The unemployment line is shortest in 50 years

April 24th, 2019 7:49 AM by Eric Fang

he economic data coming out of the US this week showed that not only is a recession highly unlikely anytime soon, but the economy is actually reaccelerating from the slowdown seen last Fall. 

Back in October and November, the Fed was very hawkish and suggested that three rate hikes would come in 2019. This caused angst and fear that economic conditions would slow to a recession. It also led to a sharp decline in Stocks and consumer confidence. 

Fast forward just a couple months to January 2019, and the Fed completely reversed their position, and signaled there is no rate hike coming in 2019 or anytime soon. This new "wait and see" position from the Fed has set off a rally in Stocks and a surge in consumer confidence. 

It has also sparked confidence and certainty in the business climate, thereby giving corporations reason to hire and retain employees. 

And that was clearly evident this week as we saw yet another decline in Initial Jobless (Unemployment) Claims and the rate at which people are being fired from their jobs. 
Posted in:General
Posted by Eric Fang on April 24th, 2019 7:49 AM



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