Employment Stayed Strong Despite High Rates

Posted by Michael Harter | Nov 20, 2024 | In The News

Sources: Federal Reserve, 2024; U.S. Bureau of Labor Statistics, 2024

When the Federal Reserve raises interest rates to fight inflation, the unemployment rate typically rises as the economy slows in response to the higher cost of borrowing. Remarkably, unemployment remained under 4% for 27 months during and after the Fed’s unprecedented rate increases that began in early 2022 — the longest period at this level since the late 1960s. It has risen slightly but remained just above 4% through September 2024. With inflation apparently under control, the Fed has begun to decrease rates, which could help keep employment strong.

Prepared by Broadridge Investor Communication Solutions, Inc. Copyright 2024.

About The Author

Michael Harter

In 2000, Robert F. Murray & Company, CPAs formed RFM Financial Solutions, LLC to formalize their investment management practice of which Mike has been responsible for its operations. “For years, we had clients coming to us asking for our opinion on investments” explains Mike. “They trusted our advice and so we decided to elevate and expand our services to our client’s needs and requests. So we designed a unique approach to guarantee that our advice would always be in the best interest of our clients and that no outside influences such as commissions would impair our recommendations.”