if the fed wants to increase the interest rate it will

Rubenstein noted that economic downturns present opportunities for investors who can buy good companies at deep discounts. You know, it’ll be a modest recession, if it occurs. I don’t see signs of that,” Rubenstein said. “We’re not likely to go into a deep recession like we had in ’07-‘08. The Carlyle co-founder said he doesn’t know if the economy is going into a “banana” or not – but it won’t be the end of the world if it does happen. So he came up with another word: banana.” “When I worked in the White House under President Carter, the inflation adviser there was told not to use the R-word. “Nobody knows for certain, and I don’t like to use the word ‘recession,’” said Rubenstein. Nonetheless, economists continue to warn the US economy is at an elevated risk of a recession, if not this year then in 20. The number of job cut announcements made through August is the lowest year-to-date total since 1993, according to outplacement firm Challenger, Gray & Christmas. Weekly jobless claims declined last week to a two-month low. However, there is little evidence that layoffs are becoming more widespread. (BBBY) and Snap Inc., the parent company of Snapchat, have already disclosed major layoffs in recent weeks. What the Fed talks about when it talks about pain The job fair had 8,000 jobs available from 100 different employers and expected approximately 3000 people to attend the fair. People attend the Mega Job Fair held at the FLA Live Arena on Jin Sunrise, Florida. But a failure to restore price stability would mean far greater pain,” he said during his speech. “These are the unfortunate costs of reducing inflation. Powell, in a high-profile speech during the Jackson Hole Economic Symposium last month, said the Fed will “forcefully” use its policymaking tools to get inflation under control – a strategy that will bring “some pain to households and businesses.” If the Fed tries to slow the economy to the point where inflation gets back down to its 2% goal, it would lead to the loss of 5.3 million jobs and the unemployment rate climbing to 6.7%, according to a recent analysis from RSM, an accounting and consulting firm. The Fed isn’t going to publicly say, ‘We want job losses,’” said Rubenstein, who interviewed leading investors for his new book, “How to Invest: Masters on the Craft.” The jobless rate ticked up to 3.7% in August, but for a healthy reason: Hundreds of thousands of Americans got off the sidelines to actively look for work.īut a jump in the unemployment rate toward 6% would translate to a sizable wave of layoffs. The unemployment rate tumbled in July to 3.5%, tied for the lowest level since 1969. The goal is to ease demand for workers, which would bring the jobs market more into balance and take pressure off prices. To cool inflation, the Fed is increasing interest rates at the fastest pace in decades. Here's why that's good newsįed officials have warned the jobs market is too strong right now and is contributing to the very high cost of living. A 'help wanted' sign is displayed in a Manhattan store on in New York City.

If the fed wants to increase the interest rate it will