Inflation continues to be a major concern of the US economy

The US government released a report showing that the US job market continued to grow steadily in May, but the increase in wages did not keep up with the increase in commodity prices and inflationary continues to be a major concern of the US economy.

Speaking at a press conference at the White House, US President Joe Biden The unemployment rate in the US fell to near a record low of 3.6% in May.

The job market is considered the brightest point of the US economy in May, with hourly wages reaching $31.95, up 5.2% year-on-year. However, analysts say the pace of wage growth is still significantly lower than the growth in commodity prices of 8.3% in April.

“The Federal Reserve has raised its benchmark short-term lending rate, by doing so they will reduce the flow of money into the economy and reduce inflationary pressures,” said Joshua Boak, an AP reporter. But the side effect of this move is that it could drag the economy to dangerously low levels and potentially into a recession.Also, many people looking to buy a home will see the interest they pay the bank. goods skyrocketed”.

People shop at a store in New York, USA. (Image: Getty Images)

Food, energy, and housing costs in the United States are all growing at their fastest rates in nearly 40 years. After raising interest rates to 1% in May, the Fed is expected to continue to conduct two more rate hikes in June and July.

“The Biden administration hopes these measures will provide moderate and steady growth. However, many fear that the US economy is entering a downward spiral along with the fight against inflation. Moreover, economic risks are not only coming from the domestic market, the whole world is dealing with the problem of inflation – which is slowing growth in China and Europe and will have a strong impact on inflation. the US economy,” said Joshua Boak.

However, despite challenges from inflation, the US government forecasts that the US GDP will still grow by 2.2% in the whole of 2022 and inflation will decrease to 2% in 2024.

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