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flag Fed's rate cuts since 2024 support jobs, but inflation remains high amid labor shortages.

flag Richmond Fed President Thomas Barkin said the Fed’s 175 basis point rate cuts since late 2024 have supported the job market as inflation remains above the 2% target. flag He noted strong demand, productivity gains, and recent fiscal stimulus—including tax cuts and deregulation—as factors boosting economic resilience. flag Despite low unemployment, slow job growth persists due to a shrinking labor force from declining immigration and birth rates. flag Barkin emphasized that sustained inflation below target is critical for long-term stability, and while he doesn’t vote on policy this year, he remains cautious, expecting further progress toward the Fed’s goal.

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