Unemployment Rate Set to Fall to 53-Year Low Next Year, Goldman Sachs Says
"Red-hot demand for workers" will send U.S. jobless rate tumbling, the economists said.
November 16, 2021 2 MIN
"Red-hot demand for workers" will send U.S. jobless rate tumbling, the economists said.
Consumer confidence fell in November to the lowest level in a decade as inflationary concerns weighed on the mindsets of Americans.
Consumer prices rose last month at the fastest clip in more than three decades, signaling rates for home loans are likely to rise.
The U.S. unemployment rate dropped to the lowest level since the start of the Covid-19 pandemic as payroll gains in October rose to a three-month high.
The Federal Reserve's nearly $4 trillion of bond purchases doubled its balance sheet and caused mortgage rates to hit new lows 15 times last year.
Housing starts dipped by 1.6% in September and the number of permits reached a one-year low while homebuilders grappled with supply-chain gridlocks.
Homebuilder confidence rose in October, the second consecutive month of gains, despite ongoing supply chain bottlenecks as the pandemic continued to stymie deliveries.
The University of Michigan’s preliminary consumer sentiment index unexpectedly dropped to 71.4, the second-lowest reading since 2011, a report on Friday showed.
The Fed said it could begin reducing its asset purchases as early as next month, according to minutes released on Wednesday.
Core inflation, known as the Fed’s preferred gauge because it excludes volatile food and energy prices, was flat in September. The overall inflation reading rose to a 13-year high.
Economic confidence in the U.S. reached the lowest level since 2009, according to a Gallup poll conducted last month.
The evolution of remote work will play a role in determining future home-price growth, according to a report from NBER.
Homebuilder confidence declined to a nearly two-year low in May as higher mortgage rates discouraged buyers and inflation resulted in more expensive material costs for builders.
Soaring inflation rates along with elevated housing prices weighed on the minds of Americans.
