Wall Street sighs with relief. Job creation in the United States accelerated in July to 117,000 contracts compared to the 46,000 posts created in the previous month. Unemployment, meanwhile, fell a tenth to 9.1%. What remains to be seen is whether the indicator is able to begin to chase the fears of a second recession.
The recession is still a reality for nearly 14 million unemployed, 44.4% of long duration. To these it must be added those forced to work part time and those who are not seeking for work. That brings underemployment to 16.1%.
The Federal Reserve will meet next Tuesday. In their last meeting they decided to pause the machine that makes money in order to wait to see how the economy will go on. They also defined the steps they will follow in order to leave the incentives. But now the market is asking them to apply some action to give an incentive for banks to move their reserves.
Source: El País / The New York Times