Billionaire: The Fed won't say it out loud, but it really wants a higher unemployment rate
New York (CNN Business)For many years after the Great Recession, the Federal Reserve did everything in its power to lower the unemployment rate. Now, the central bank is trying to do the exact opposite.
David Rubenstein, the billionaire investor and co-founder of The Carlyle Group (CG), told CNN last week the Fed is actively rooting for the unemployment rate to go up to get inflation under control.
"He can't quite say this, but if the unemployment rate goes up to 4% or 5% or 6%, inflation will [probably] be tamed a bit," Rubenstein said of Fed Chairman Jerome Powell, whom he hired a quarter-century ago to work in private equity, "But he can't come out and say, 'I hope the unemployment rate goes up to 6%.' That doesn't sound politically very attractive to say that."
Fed officials have warned the jobs market is too strong right now and is contributing to the very high cost of living. To cool inflation, the Fed is increasing interest rates at the fastest pace in decades. The goal is to ease demand for workers, which would bring the jobs market more into balance and take pressure off prices.
https://www.cnn.com/2022/09/07/perspectives/inflation-jobs-recession-rubenstein/?dicbo=v2-9a0c7c697346efc5b89cd4397caf0f70&hpt=ob_blogfooterold
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