In 2020, the Fed was justified in slashing interest rates to near-zero to support an economy battered by the pandemic. The Fed kept rates at ultra-low levels until March 2022, when it began to hike rates aggressively to combat inflation. That means it can’t help specific groups whenever it’s trying to boost or ease pressure off the labor market, which is what officials are currently doing. Over the past two years, the Fed has lowered its benchmark lending rate by 1.75 points in an effort to keep the labor market afloat. “This means we cannot let the labor market falter.

Source: CNN December 28, 2025 00:31 UTC