California unemployment rose in 57% of three-year periods after big rate hikes
The Federal Reserve, which raised its benchmark interest rate last week, essentially plays the role of party pooper with two conflicting chores — keep inflation low and employment high.
The target for the benchmark Fed Funds rate was upped this week by a half-percentage point, the largest hike in 22 years. And Fed Chairman Jerome Powell was quite clear — there will be more hikes, likely this summer.Central bankers know how to start a party. Their favors — cheaper financing — can be a great propellent to business activity. Historically cheap rates in this pandemic era have played a big part in the current inflation mess.
My trusty spreadsheet used several key economic yardsticks to score the Fed’s track record, pulling four decades of data from the Fed Funds rate , the U.S. Consumer Prices Index , California unemployment , U.S. gross domestic product and California home prices .
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