The Fed has now acted, raising interest rates by half a percentage point. That is the largest incremental increase in 22 years, though it is not, by itself, an economic earthquake.
The Fed’s high interest rate approach to stemming inflation is about reducing the bargaining power of workers, and especially workers at the lower end of the wage ladder.
The share of unemployment due to people who voluntarily quit their jobs is usually seen as a good measure of labor market strength. It shows people’s confidence that they will quickly find another job after quitting.
