After a rapid three months to start off 2014, we can finally look back to analyze where we might be headed for the rest of the year. According to The New York Times, there was an “addition of 192,000 jobs last month, all from private employers.” The weather did not seem to slow down the rise in jobs. However, it is also true that the level is still far below what is needed to fully accommodate the millions of people who have joined the work force since the recession. Those who still have been jobless must be accounted for as well. Does this mean that there is still room for a lot of improvement? Or will the number of jobs added in April slow down?
Jed Kolko, chief economist at Trulia, mentions in The Wall Street Journal that there were improvements in construction jobs and that young-adult employment is slowly making its way back to ‘normal’ levels.
That’s it? All I have heard is that there is little doubt the housing market has cooled yet, but I am not very convinced that we are being led in the right direction.
Although we are reaching the point we were at when the down turn of jobs began during the Great Recession, our government needs to step on the accelerator and move the economy forward. Dallas Federal Reserve Bank President Richard Fisher accused U.S. politicians on Friday about their inability to cooperate and “accused them of impeding jobs growth.”
“If the U.S. had the right fiscal policy,” Fisher added, “the country would have an ‘incredibly fast-moving economy.’”
Has U.S. stepped on the brakes and let the economy play out?
Fisher backed himself up adding that “the U.S. Federal Reserve must avoid being locked into calendar-based policy commitments and instead ensure its forward guidance is flexible enough to allow it to respond to changing conditions.”
I believe that we, in fact, should be worried that predictable commitments are unsound policy, which can lead to false complacency and market instability.
We even found the market’s sensitivity to be true when Fed Chair Janet Yellen commented that an interest rate hike could follow six months after the central bank ends its bond-buying stimulus. Stock, bond, and currency markets took a hit from this very instance. I believe we are witnessing a pause on our economy from here on out. We cannot afford any time wasted moving forward, but with our government lacking the ability to be able to work together, we may find ourselves at a standstill throughout the summer months. Our government cannot implement one plan and think it will work everything out for the next couple years. They have to work with the present times and implement plans while the economy improves as well.