Scripps News: The latest numbers show the US economy is going strong

June 10, 2024

The latest numbers show the U.S. economy is going strong. While unemployment is up slightly, so are job growth and wages, while inflation is trending down.

But that's not necessarily great news for borrowers who are hoping for an interest rate cut from the Federal Reserve.

The Federal Reserve is reconvening later this week for its fourth interest rate meeting of the year. But because the latest data is painting an optimistic view of the economy, the likelihood of a rate cut is looking slim.

"The economy is coming back from pandemic years in vengeance," said Kishore Kulkarni, a professor of economics with Metropolitan State University of Denver.

Kulkarni said the latest economic news is exciting, with hundreds of thousands of new jobs added in May and inflation slowing once again in April.

But he says the strength of the labor market may be a worrying sign for the Federal Reserve.