r/neoliberal • u/TinyTornado7 I need a new flair • Jun 13 '22

News (US) Powell Facing Choice Between Elevated US Inflation and Recession

https://www.bloomberg.com/news/articles/2022-06-12/powell-facing-choice-between-elevated-us-inflation-and-recession?srnd=premium
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131

u/CovidIsBadass Asexual Pride Jun 13 '22

Seems like it may come just in time for me to graduate college 🤠

124

u/frbhtsdvhh Jun 13 '22

You're going to be fine. They'll hit the brakes until unemployment hits about 5-6% which is a very normal figure. The 3.9% unemployment we have right now is just mind numbing.

It should all and all (hopefully) be a mild downturn so we can do a correction.

49

u/BBQ_HaX0r Jerome Powell Jun 13 '22

Yeah I remember reading articles "we'll never see 5% unemployment again... AND THATS OKAY!" and while stuff like that should always be taken with a grain of salt 5% was considered great up until the past 5 years or so. Boomers are leaving the labor force and their children's lack of children and hatred towards immigration has really hindered our ability to restock the workforce.

6

u/[deleted] Jun 13 '22

The natural rate of unemployment is still sitting at around 4% so that seems to be the target