Shortcut Navigation:

AFL-CIO Now

The Federal Reserve Raising Interest Rates is Unwelcome and Unnecessary

The Federal Reserve Raising Interest Rates is Unwelcome and Unnecessary

Wednesday’s decision by the Federal Reserve to raise interest rates is unwelcome and unnecessary. As admitted in its statement, investment remains soft, growth is only moderate and inflation expectations are little changed. Moreover, the economy confronts financial headwinds from the recent jump in long-term interest rates and an even stronger dollar.

The Federal Reserve seems to be relying on old economic thinking that should have been discarded after the financial crisis. That poses a danger the economy will be slowed before full employment is reached, putting a stop to workers reclaiming their fair share.

If the Federal Reserve is worried about financial market exuberance, it should use its regulatory tools and not the blunderbuss of higher interest rates. Financial markets must not be allowed to stampede the Fed into raising rates.

The email address provided does not appear to be valid. Please check the address entered and try again.
>>
Thank you for signing up to receive our blog alerts. You will receive your first email shortly.

Related Stories

Take Action

Tell Congress to Oppose Trump's Nominee for Labor Secretary

Donald Trump’s nominee for secretary of labor—fast food CEO Andrew Puzder—would be a disaster for working Americans. Tell your members of Congress to oppose him.

Sign the Petition »

Connect With Us

  • Facebook
  • Twitter
  • YouTube
  • Flickr

Get Email from AFL-CIO


Msg & data rates may apply. Text STOP to 235246 to stop receiving messages. Text HELP to 235246 for more information.

Blogs

Join Us Online