U.S. Economy Added 151,000 Jobs; Buy Backs of Treasuries Expected to Help too
In October, the U.S. economy added 151,000 jobs, reports The Wall Street Journal. That larger than expected increase came as business stepped up hiring. And it could bring a "ho ho ho" to holiday sales.
More good news could come on the job-creation front. That's because the Federal Reserve is buying back $600 billion in U.S. Treasuries from now until June. That will reduce interest rates on everything from mortgages to car loans. The plan is to provide incentives for consumers to open up their pocket books again. Businesses could respond by creating even more new jobs.
Clearly, jobs are what are needed to bring down the stubborn unemployment rate. It is stuck at 9.6 percent. That translates into 14.8 million people without jobs. Let's hope the November job numbers will indicate a drop in unemployment.