Fed Makes Right Decision Not to Raise Rates
Slack labor market, low wages, and racial disparities call for keeping interest rates low
1/27/2016
Statement and Booking Opportunity : Ady Barkan, Campaign Director for Fed Up, released the following statement regarding the Federal Reserve’s Federal Open Market Committee meeting today:
“In December, the Fed voted to slow down the economy by raising interest rates despite economic indicators and the real experiences of working Americans suggesting it was still too soon. The Fed made the right decision today not to raise rates again. Ongoing labor market slack, low wages, and major racial disparities in the labor market suggest that it should continue this ‘wait and see’ approach.”
“In recent weeks, Fed officials have said that instability in global financial markets is influencing their decision about future rate hikes. The declines in domestic and foreign stock markets this year certainly suggest that investors are uncertain about the strength of the economy. Further slowing down the economy in the face of such instability would be a serious mistake.
“Most important, however, is that Fed policymakers keep their eye on the prize: genuine full employment for all. The Fed has a mandate to pursue full employment, and should therefore look first and foremost at labor market conditions here in the US. Low labor force participation, the inability of millions of workers to get the hours and wages they need, unemployment rates for African Americans that remain above pre-recession levels in most states and cities, and very low rates of price and wage inflation should be the primary factors Fed policymakers consider in the coming months.”
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The Center for Popular Democracy promotes equity, opportunity, and a dynamic democracy in partnership with innovative base-building organizations, organizing networks and alliances, and progressive unions across the country. CPD builds the strength and capacity of democratic organizations to envision and advance a pro-worker, pro-immigrant, racial justice agenda.
Media Contact:
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