On December 16th, the Federal Open Market Committee of the Federal Reserve Bank will meet to consider whether to raise interest rates. This decision to raise interest rates has real implications for the well-being of North Carolina’s working families. Yet often the policy decisions of the Fed are not accessible to working families or the organizations that work with them.
As Robert Reich shares in this explainer, the Fed’s monetary policy has very real implications for jobs and wages. And in fact, many data points right now point to ongoing challenges in the labor market that make a move to raise interest rates counterproductive to efforts to improve working families well-being.
In a recent piece by the Economic Policy Institute, analysis of the oft-ignored role of the Federal Reserve Bank and monetary policy to the well-being of working families makes clearer just how important this upcoming decision is and the mandate of full employment overall for the health of our economy.
It is one that should be front and center as North Carolina contends with employment levels still below pre-recession levels and falling wages.