The United States broke its record for time without an economic recession on Monday, entering the 121st consecutive month of gross domestic product (GDP) growth since the 2008 recession.
The recovery, which began in July 2009, turned 10 on Monday, marking the longest period of economic expansion in modern U.S. history.
After unemployment peaked at 10 percent in October 2009, the decade-long recovery brought the unemployment rate down to a near record low – 3.6 percent in June. The economy has created jobs every month since October 2010, while GDP growth has remained strong, if not always remarkable, over the past 10 years.
But even though the United States has strong sales figures after 10 years of expansion, millions of workers in hundreds of communities across the country have not felt the full benefits.
The Federal Reserve sought to stimulate the economy with near zero interest rates and billions in bond purchases after the 2007 financial crisis triggered recession in 2008.
The Fed’s efforts are widely praised by left-wing economists for stabilizing and restarting the US economy. But the Fed’s cheap monetary policies may also have pushed income inequality to record highs.
Low interest rates helped fuel a stock market rally and surges in house prices that provided little income for those who lost their homes and savings in 2008, analysts said, but a godsend for those who did. weathered the recession without huge costs.
Wage growth has also lagged behind the sharp drop in unemployment, even as vacancies exceed the number of available workers by nearly a million, according to Labor Ministry estimates.
And although the United States has created millions of jobs since the recession, these were mostly service sector jobs, doing little to help communities that have depended for decades on lost jobs in the United States. the manufacturing sector.
After growing 2.9% of GDP in 2018, the US economy is expected to grow at a slower rate of 2.1% in 2019, according to the Fed’s projections. The Fed can also cut interest rates if damage from President TrumpDonald TrumpTrump tells former aide Navarro to “protect leadership privilege” as part of the House’s COVID-19 investigation. The Jan. 6 panel could see the influence of Bannon’s prosecution.Trade battles with China and Europe, slowing global growth and geopolitical tensions threaten to further slow the U.S. economy, the bank said last month.