PHILADELPHIA (KYW Newsradio) — The latest jobs report showed that the American economy added another 187,000 jobs in August. While the numbers from previous months had been revised downwards and the unemployment rate ticked up to about 3.8%, the overall labor picture remains robust.
"A-minus," local economist David Fiorenza told KYW’s Matt Leon in their monthly conversation about the economy. "I see a lot of positives ...."
Inflation has been a major problem for a long time, but it has receded significantly over the last several months. Notably, it was the driving force behind the Federal Reserve's interest rate rise.
Will we continue to see hikes?
"I think we've been so used to 1.7 to 2% inflation that everybody has it in their mind, 'We gotta get back to 1.7%,'" Fiorenza says. "I think people are gonna be putting pressure on the Federal Reserve to increase it one more time this year."
So how much does he think that rate hike will be?
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"Quarter point,” Fiorenza guesses. “I would not go anymore. I'd be disappointed if they did."
Federal student loans have once again started to accrue interest with payments set to restart for millions of people. It is a big deal for the millions of borrowers who have to pay, but will it impact the overall economy?
"Not in the short run," Fiorenza says. "One to three months — I'm gonna say no, but I believe after three months it could have an effect in the economy."
You can listen to the full interview with Fiorenza below: