The Federal Reserve wants you to think inflation is largely cured, so it can go tinker with a soft job market.its first cut in four years. This is no minor policy tweak. Since 2000, rate cuts of this size were previously made during the pandemic lockdowns in 2020, the global financial collapse of 2007-08, and the dot-com crash of 2001-02.
To Schniepp’s eyes, however, the business climate remains “too strong” to justify this level of Fed help. One estimate of the nation’s current gross domestic product growth is at 2.9% – a typical expansion rate.Now, California’s workers should be pleased that the job market is the major concern of central bankers. In California, employment is growing at a 1%-a-year rate – which is fairly reasonable to Schniepp, “considering there’s not much of a housing market.