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I'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 F
by verdverm 28d ago
I'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 28d 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 28d 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