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Fed's rate cuts since 2024 support jobs, but inflation remains high amid labor shortages.
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.
He noted strong demand, productivity gains, and recent fiscal stimulus—including tax cuts and deregulation—as factors boosting economic resilience.
Despite low unemployment, slow job growth persists due to a shrinking labor force from declining immigration and birth rates.
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.
Los recortes de tasas de la Fed desde 2024 apoyan los empleos, pero la inflación sigue siendo alta en medio de la escasez de mano de obra.