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Yeah, also doesn't mention the super low 3.4% unemployment rate the US still has. Most of the people being laid off are being re-hired within a very short time
by iepathos 3y ago
Yeah, also doesn't mention the super low 3.4% unemployment rate the US still has. Most of the people being laid off are being re-hired within a very short timeframe. The Fed has wanted unemployment back up to ~6% for over a year and can't get it.
- gtirloni 3y ago> The Fed has wanted unemployment back up to ~6% for over a year and can't get i Why is the Fed interested in that and why does it want that number to be higher?
- arc-in-space 3y agoIt's not that they specifically want less people to do work, rather, high employment is a symptom of an overheating economy in which hiring is (for now) cheap and it's difficult to replace people and meet high demand, because most people who would be looking for a job already have one.
- ohthatsnotright 3y agoMy understanding is that it will reduce overall demand because people cutback on spending to prepare for a recession, or simply don't have the spare cash to buy because their financial situation changes by becoming unemployed (or someone in the same financial household did).
- iepathos 3y agoThe Fed believes higher unemployment will bring down inflation. Also, higher unemployment increases labor market flexibility so that companies can easily adjust their labor force based on fluctuations in the market. Low unemployment makes it hard for companies looking to hire and expand.