Although the economy of the United States of America is going through a technical recession, this is not yet evident in the dynamics of the local labor market. This continues to create inflationary pressures, which is likely to lead to a continuation of the Fed’s aggressive action against inflation.
Vacancies in the labour market
In the United States, 528,000 jobs were added in July. That’s about double the number analysts expected. The US labor market continues to overheat, continuing to contribute to the build-up of inflationary pressures. At the same time, it was high inflation that prompted the US Central Bank to uncompromisingly raise key interest rates, which in turn was reflected in the decline of the stock and cryptocurrency markets.
Anti-inflationary crusade
Recent developments in US employment suggest that the Federal Reserve will not let up in its anti-inflationary campaign and will raise rates at least as much as before. This could stop the fragile recovery not only on stocks, but also on cryptocurrencies. Bitcoin has practically only fluctuated around the $23,000 mark over the past week and has not found a clear direction. It will therefore be interesting to see how it reacts to the latest US inflation figures, which will be released on Wednesday, August 10.
