Economic statistics indicate the economy is producing over two millions jobs per year. The continuing rise in these statistics raises the question as to when the Federal Reserve will increase interest rates. The Federal Reserve directly controls short term rates but only indirectly affects long-term rates through their actions. It is possible that the Fed may begin to increase short term rates as early as September. As the second quarter comes to an end, we look to bounce back from a subpar first quarter where the economy contracted. The economy did significantly better in the second quarter. June’s Employment report showed an increase of 223,000 Jobs. The unemployment rate declined by 0.2 percentage point to 5.3 percent in June, this is the lowest the unemployment rate has been in 7 years.
Source: Origination Pro