Unemployment at 8-Year High - July 1992

Unemployment at 8-Year High - July 1992

The Labor Dept. reported, July 2, that the nation's unemployment rate stood at 7.8 percent in June, the highest level since March 1984. The jobless level had climbed 0.3 percent in each of the past 2 months. Responding to the newest data, the Federal Reserve Board, July 2, cut its discount rate---the interest rate it charged to banks---from 3.5 percent to 3 percent. This rate had not been so low since 1963. The Labor Dept. reported, July 10, that prices charged by producers rose 0.3 percent for finished goods rose 0.2 percent in June. The department said, July 14, the consumer prices rose 0.3 percent in June. The Commerce Dept. said, July 16, that housing starts had declined 3.2 percent in June. The department reported, July 17, that the U.S. merchandise trade deficit had risen to $7.38B in May. Federal Reserve Board Chairman Alan Greenspan predicted, July 22, that the economic expansion would soon gain momentum. On July 30, however, the Commerce Dept. reported that the gross domestic product had grown by only 1.4 percent during the 2nd quarter.