In this article the head of the Federal Reserve, Janet Yellen, describes the state of the current U.S. Job market. In a speech given a few weeks ago she describes the job market as growing, however it is not yet fully recovered from the crash of 2008.
This is prompted by the debate going on within the Board of Governors about whether to begin raising interest rates again, or to keep them where they are now. Yelllen believes that is is not yet time to be raising the interest rates and points out the incomplete recovery of the job market.
I agree with statement in that the economy has not had a full recovery, recent charts have shown the increase in the market yet its still growing and has not leveled out completely.
ReplyDeleteI agree that the economy has not yet fully recovered, but that does not necessarily mean the Fed should not raise interest rates. The most important idea in this article is that timing is everything. If interest rates remain too low for long, the economy could be in serious trouble if there is a sudden, unexpected downturn.
ReplyDeleteWhile the economy hasn't fully recovered, as the article we read for the homework stated, JPMorgan predicts expansion could last until 2018. That being said, without at least getting a foot in the door to expand interest rates, the Fed could be royally screwed if something drastic does happen/it decides too late to increase interest rates too rapidly.
ReplyDeleteInterest rates effect how people borrow, and recent statistics have shown that borrowing is currently high which is a huge factor in a recovering economy, as well as a stable one. If more borrowing will occur there will be more money in the economy and therefore businesses will be making more revenue. An increase in business activity and cash in the economy will thus lead to more job opportunities.
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