Further rate cuts may not be a magic solution to the current labor market problems, because the challenges facing the hiring market go beyond simply making borrowing easier. As Federal Reserve Board member Jeffrey Schmid noted, lowering interest rates “will not address the current labor market problems,” because while it stimulates overall demand, companies still face high costs, pressures from tariff charges, and difficulties in accessing effective financing.
✔️ On the other hand, some analysts believe that weak hiring does not stem only from a decline in demand, but from deeper structural factors, such as a slowdown in the supply chain, higher costs of materials and production, as well as companies’ lack of certainty about the economic future. Therefore, rate cuts may provide partial support, but they do not address the underlying roots of the labor market issue, which requires broader interventions including tax, trade, and regulatory policies—not just monetary easing.#خفض_أسعار_الفائدة #BTC $BTC
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