Full employment used to be a worthy goal. Surely if everyone who can work is working, we’d all be happier and tax cuts really would be a way to Level Up. In America, however, those that supposedly know are saying that more unemployment is needed to bring down inflation. The logic is that interest rate rises will make employers cut jobs, the non-working workers won’t have anything to spend and so prices will stop rising. ‘If it’s not hurting, it’s not working’ is fine if you’re well-paid, unlikely to be laid off without a big pay-off, and hearing it from your personal trainer. Bu not if you’re at the bottom of the pile and likely to be the first out, back on the street Cannon Fodder once again.
“Do not expect America’s interest rates to fall just yet”
As rehearsed many times on these pages, the next move onwards and upwards for your investments depends largely on the decisions of various bankers and economists in what would once have been ‘smoke-filled rooms’.
