Time to Put the Brakes on Jobs?

Should the Fed continue raising interest rates?

After several rate increases and with unemployment at a 17-year low, Fed officials face the question of whether joblessness might fall so much that they should pick up the pace of tightening to prevent the economy from overheating. The latest employment report released Friday by the Labor Department doesn’t suggest they need to move more aggressively or slow down. Employers added 148,000 jobs in December, and the unemployment rate was unchanged at 4.1%. Average hourly earnings of private-sector workers rose 2.5% from a year ago, in line with recent monthly readings.

Goodness. We wouldn’t want joblessness to fall too low, would we? That might force employers to pay people more!

If the Fed wants to raise rates because they think they need to keep their powder dry for the next recession, I can buy that. Maybe. But the only reason to worry about unemployment getting too low is a fear that it will push up inflation. And there’s precisely no reason to fear that inflation is about to pick up. Someday there might be, but that day is not today, not anytime in the past two decades, and unlikely to be anytime in the next few years either:

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

payment methods

We Recommend

Latest

Sign up for our free newsletter

Subscribe to the Mother Jones Daily to have our top stories delivered directly to your inbox.

Get our award-winning magazine

Save big on a full year of investigations, ideas, and insights.

Subscribe

Support our journalism

Help Mother Jones' reporters dig deep with a tax-deductible donation.

Donate