A high ranking official from the Federal Reserve named Michelle Bowman just spoke about the future of the American economy. She believes the central bank needs to be prepared to lower interest rates again soon. Her main worry right now is that the job market is looking a bit weak and fragile.
During a meeting in Massachusetts she explained that current bank policies are still making it hard for businesses to grow. She warned that the job situation might actually get worse over the next few months. If things do not get better she thinks the government should act quickly to help out.
In the past the Federal Reserve was mostly focused on stopping high prices. Now they are shifting their attention to making sure people can keep their jobs. Bowman thinks that while prices are finally starting to settle down the risk of people being laid off is growing.
She expects the economy to keep growing but only if the bank makes it cheaper to borrow money. If demand for products does not go up soon companies might start cutting their staff. She wants to avoid this by being proactive instead of waiting for a total crash.
The official also noted that the way people’s pay is growing now fits perfectly with their long term goals. Most of the hard work to lower inflation has already been done. Now the goal is to keep the country working while keeping those prices stable for everyone.
