Low interest rates and unemployment
Low-interest rates also tend to boost the housing market, spur auto sales, and increase personal consumption spending. Expanding Fiscal Policy to Control Unemployment The second way the government reduces unemployment is through fiscal policy. Currently, the US unemployment rate is at the lowest it’s been since 1969. Sitting at 3.7%, the current rate appears to be a good thing.The rate has been steadily dropping for nearly a decade, which would seem to indicate that the economy is strong and that things are going well in the labor market. Low Interest Rates Might Be What’s Hurting Growth. output and unemployment. The Federal Reserve’s dual mandate, for instance, directs it to seek stable prices and maximum employment.