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Interest rates are not that high, once you move beyond this century's period of near-zero rates which was never sustainable
by verdverm 29d ago
Interest rates are not that high, once you move beyond this century's period of near-zero rates which was never sustainable
- toomuchtodo 29d agoInterest rates are high by recent historical standards. Something does not need to be sustainable for the transition to be painful. FRED: Federal Funds Effective Rate (FEDFUNDS) - https://fred.stlouisfed.org/series/fedfunds https://fred.stlouisfed.org/series/fedfunds How Did Zero Interest Rate Policy (ZIRP) Affect Software Developer Jobs? - https://news.ycombinator.com/item?id=49730161 https://news.ycombinator.com/item?id=49730161 - September 2026 What the The end of 0% interest rates means for software engineers - https://news.ycombinator.com/item?id=39193331 https://news.ycombinator.com/item?id=39193331 - January 2024 (169 comments)
- verdverm 29d agothat's exactly the point I'm making, recency bias, it contorts our perceptions
- toomuchtodo 29d agoIs your thesis that interest rates have no relation to job openings and hiring?
- verdverm 29d agoI'm simply talking about a number, an adjective you placed with it, and the historical data that would indicate a different adjective is more appropriate The Fed seems to think the rates are likely lower than they need to be, given the broader market dynamics. Rates interplay with both spending and inflation, inflation being above the long-term target the Fed set. When that is the circumstance, the Fed typically raise rates to reduce inflation.
- toomuchtodo 29d agohttps://www.tpeconomy.com/how-interest-rates-affect-jobs-loans-and-prices/ https://www.tpeconomy.com/how-interest-rates-affect-jobs-loa... > How Rates Affect Your Job > Interest rates influence employment through a chain reaction. When rates are high, businesses face higher borrowing costs for expansion, equipment purchases, and working capital. This makes them less likely to hire new workers or invest in growth. Consumers also pull back on big purchases, homes, cars, appliances because loans cost more, reducing demand for the workers who make and sell those products. > The Federal Reserve cut rates three times in late 2025, reducing its benchmark by 175 basis points, partly because job gains had slowed dramatically. Total employment for 2025 was revised down by 898,000 jobs meaning the labor market was significantly weaker than initially reported. January 2026 brought better news with 130,000 jobs added and unemployment falling slightly to 4.3%, prompting the Fed to pause further cuts. > This balancing act matters for your job security. If the Fed keeps rates too high for too long, businesses may lay off workers as growth slows. But if the Fed cuts too aggressively, inflation could surge again, eventually forcing painful rate hikes that trigger recessions and mass layoffs. Lower rates = more jobs. Higher rates = less jobs, or offshoring to cheaper locations when possible.
- verdverm 29d agoyou might dig deeper, the relation is not so simple; smells of contemporary political rhetoric are starting to waft my way you might also consider the dynamics of un-employed, under-employed, and those who have given up, direct unemployment numbers do not tell the whole story how much jobs pay also matters, https://www.wsj.com/economy/consumers/american-incomes-hit-record-last-year-as-women-gained-ground-304ed2fd https://www.wsj.com/economy/consumers/american-incomes-hit-r..., as does PPI/CPI
- verdverm 28d agotimely, rates were raised today to tame inflation https://www.bbc.com/news/articles/cw4gmlyvj422o https://www.bbc.com/news/articles/cw4gmlyvj422o