Fed pressured to cut rates as unemployment hits highest level in nearly three years

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Fed pressured to cut rates as unemployment hits highest level in nearly three years
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that featured unemployment shooting to its highest rate since October 2021 is intensifying calls for the Federal Reserve to begin cutting interest rates.at the highest level in a generation in order to stifle inflation by depressing demand. Until now, the labor market has proved resilient. The latest report set off alarm bells, though, with some saying the Fed has waited too long to ease monetary policy and is now risking a recession. Liberal Sen.

But Mark Hamrick, a senior economic analyst at Bankrate, said Warren’s idea would make things worse because it would give the perception that the Fed is panicking and generate more concern. “Stagnant job growth and rising unemployment — these are the consequences of the Biden-Harris Administration’s economic policies,” Rep. Kevin Hern said after the news broke. “The harsh reality is that the Biden-Harris economy is failing American workers every day. Their policies just aren’t working — we need a new direction for our economy.”

“When combined with an unemployment rate rising to 4.3%, declining manufacturing jobs, and a weakening wage picture, the backdrop is no longer looking that great,” Ripley said. “Ultimately, today’s employment data should embolden the committee to cut policy by more than 25 basis points at the next meeting.”

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