The Briefing Room
General Category => Economy/Business => Topic started by: mystery-ak on June 23, 2022, 07:21:32 pm
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Published 1 hour ago
Powell acknowledges Fed rate hikes could cause unemployment to climb
Fed's Powell admits there's a 'risk' that unemployment moves up
By Megan Henney FOXBusiness
Federal Reserve Chairman Jerome Powell conceded on Thursday that aggressive interest rate hikes as part of the U.S. central bank's war on inflation could cause some Americans to lose their jobs.
Powell – who was testifying before the House Financial Services Committee as part of a regular, semi-annual update on monetary policy – said it is "certainly possible" to control inflation without causing unemployment to rise, but suggested that may not be the case.
"There is a risk that unemployment will move up, from what is a historically low level though," the Fed head said.
Economic projections from the Fed's June meeting show that officials expect the national unemployment rate to climb slightly over the next two years, rising from the current rate of 3.6% to 3.9% at the end of 2023 and 4.1% at the end of 2024. Powell said that an unemployment rate of that level would "still be very strong," though it means some workers could be laid off.
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https://www.foxbusiness.com/economy/powell-acknowledges-fed-rate-hikes-could-cause-unemployment-climb
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Idiots. The whole point of raising interest rates is to drive up unemployment. Good grief. If you choose to live by Keynes, then you are going to die by Keynes.
Interest rates should always be above the rate of inflation. If they aren't, then someone is expanding the money supply. The prime should be topping 8% right now. And the Fed knows it.