Re:DigitalOcean Is Doing Layoffs Right Now
by __jem on Wednesday February 15, 2023 @09:41AM
(#34804401)
You're technically correct, but this seems like a bit of a distinction without a difference. The Fed may not want unemployment, but they do want people to lose their jobs, and an obvious risk of people losing their jobs is that they'll be unemployed. There's no guarantee the Fed will stick the "soft landing."
[ Parent
| on HN ]
Re:DigitalOcean Is Doing Layoffs Right Now
by JumpCrisscross on Wednesday February 15, 2023 @09:45AM
(#34804462)
> they do want people to lose their jobs, and an obvious risk of people losing their jobs is that they'll be unemployed
No, they want less nominal wage growth. The less people lose their jobs, the better. But economies don’t adjust without creaking, which means yes, an expected effect is layoffs and bankruptcies. But the Fed doesn’t want that, and goes to significant lengths, often with negative impact on its price-level mandate, to manage this downside.