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U.S. Jobless Rate Hits 50-Year Low

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The United States is in the longest economic expansion in its history. And to further show the strength of the economy, the unemployment rate in the country has dropped to a 50-year low.

In September, the Bureau of Labor Statistics released it’s monthly Employment Situation Report that showed the jobless rate at 3.5%. This is the lowest it’s been since December 1969. This is proof that the US economy is remaining strong amidst global tensions. Many economists are talking about the fear of a recession in the coming year. But if the economy stays strong, the recession may not come as soon as predicted. Remember, every US economy has hit a recession. The idea that it will be as bad as the last one is simply a fear-based argument. Our economy is cyclical and a recession will come. How we react as consumers and professionals will determine how bad it will be.

The Federal Reserve is set to meet again. With low consumer inflation, there is a chance that they will lower the Fed Funds Rate for a third time in 2019. Their US Economy Snapshot showed that single-family housing starts and permits have rebounded over the past three months. New and existing home sales rose in August. Because the labor market is so strong, there is a chance that this will support the housing industry. We await the Fed’s decision in their next meeting.

Ken Thayer, President of Residential First Capital