Re:Fed signals higher unemployment rate might be necessary t...
by tootie on Monday June 13, 2022 @02:22PM
(#31729341)
They're not saying it's good as much as it's acceptable given the inflationary pressures attributable to cheap money and the labor shortage. Right now employment is bumping up against a hard boundary and it's creating stress on businesses. Higher rates will slow investment, reduce hiring and reduce prices. The Fed is aiming for a middle ground where they can slow inflation knowing that will unemployment will tick up, but ideally just a smidge.
We're probably pushing over the edge of "full employment" right now and backing off a little bit will be a net win for the country with a small amount of losers.
https://en.wikipedia.org/wiki/Full_employment
We're probably pushing over the edge of "full employment" right now and backing off a little bit will be a net win for the country with a small amount of losers. https://en.wikipedia.org/wiki/Full_employment