The economy added 528,000 new jobs. Why does it still feel off?

The U.S. economy added 528,000 jobs last month and the unemployment rate fell to 3.5%, tying the pre-pandemic low, the Bureau of Labor Statistics said Friday.

The U.S. economy added 528,000 new jobs last month, while the unemployment rate fell to 3.5% — tying the pre-pandemic low, the Bureau of Labor Statistics said Friday.

But for many people, something may still feel off about the economy. It could be the 9% rate of inflation. Or the two consecutive quarters of negative gross domestic product data.

"It's a mixed bag," said John Leer, chief economist at Morning Consult. "Everything people feel about the economy now, they're likely going to be feeling differently six months from now, especially if we experience widespread job losses."

U.S. economy added 528,000 jobs in July, unemployment rate at 3.5%Aug. 5, 202202:03Economists like Leer are already raising the prospect of higher unemployment because of the Federal Reserve's plans to keep raising interest rates. As part of its so-called dual mandate, the nation's central bank seeks to balance job and price stability — and right now, it believes there is too much demand for labor and not enough stability in consumer prices.

So the Fed is expected to raise its key interest rate for the fifth time this year at its next meeting in September. The idea is to make borrowing more expensive to cool off demand and try to reverse price gains, bringing inflation down to where the central bank wants it to be, around 2%.

https://www.nbcnews.com/business/economy/new-jobs-hiring-and-the-economy-whats-going-on-rcna41731

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