The US unemployment rate closed down and was at its lowest level for 50 years. However, the US still cannot give up their economy freely. Inflation is still the focus of attention because it is considered too severe.

Last weekend, US President Joe Biden said that they had reminded the country if the job report produced something positive. The US unemployment number dipped to a 50-year low in December, which is a good sign for the economy.

The US is indeed pursuing economic improvement due to the impact of the Covid 19 pandemic. And recently, the increase in oil prices due to the war in Ukraine has become a new problem and challenge. 

This economic report has sufficiently proven that the US economic plan works very well. The unemployment rate is the lowest in 50 years, and they have just finished the two strongest years of job growth in history. 

The US sees a transition to steady and stable growth. And this is expected to be the focus of talks from US officials for months.

US Job Growth Solid in December and Unemployment Falls to 3.5%, but Fed has More Work to Do

Alluding to the unemployment rate decline, Biden said this was great news. He said this proved that their economic plan was working and could push the unemployment rate to the lowest in 50 years. But their focus was elsewhere.

Biden said that the US public and officials still have work to do, namely to bring inflation down. This is to help American families feel that the cost of living is shrinking, and Biden feels that the American economy is moving in the right direction.

Until December, Inflation stood at 7.1 per cent for the 12 months. The US Fed Reserve Bank also said that inflation, which had a 40-year high of 8.6 per cent the last June, could be overcome with various policies involving changes in interest rates.

The goal of these hikes is to curb spending and make credit costly. It may end up restricting production, but slowing the economy can trigger a recession. Participants also reaffirmed that the central bank's commitment is to return inflation to the FED objective.

A direct consequence of this economic uncertainty is inflation that lay off. However, the main discussion is still about the US economy, which maintained a strong pace of job growth in December, and the unemployment rate has fallen to a rate of 3.5%.

The labour market is also in a fairly calm position because it is sustainable by consumer spending. Mid-year credit with various other projections is considered to help the US economy to a stable level, and inflation could be near zero to 4.5 per cent later.

Biden Says US Economy Will Accept Something New To Fight Recession Fears and Other Fed Central Roles

"Inflation remains far too high, and several signs are generating great concern," said Federal Reserve governor Lisa Cook. In this statement, it can also be said that the US economy is still the centre of attention, and bringing inflation back to the 2% target is the main task.

Red's credibility is at risk, and they must have an order that can be sacrificed to control inflation. According to one economist, what can be done is to provide a balance sheet and eliminate the imbalances that have been driving prices higher until conditions worsen.

The Fed's commitment to positively affecting the US economy has shown a bright signal. The balance sheet at the right pace and runoff to an adequate level is the focus. For this reason, Biden plays a direct role in helping the US economy to return to strength.