The US Federal Reserve is preparing to cut interest rates for the first time since late 2014, with a goal of raising them by 1% next month.
In a letter to members of the Federal Open Market Committee, a group of top central bank governors warned that the economic situation and unemployment levels have become so bad that it may be necessary to cut back on some jobs.
The Fed is expected to start raising rates next month and will take up the issue with the Fed’s top policymakers at its meeting on February 12, but the decision will be made before the Federal Reserve opens its next monthly policy meeting.
This will allow for a much more measured response from the Fed to the economic concerns it has expressed over the past year and a half.
The Fed is due to meet on February 23, and there is a possibility that the Fed may delay the decision for a few days to allow time for Congress to pass a budget resolution.
The Federal Reserve’s action will be a significant blow to many of the jobs created during the financial crisis, when the Fed raised interest rates to cool the economic storm and spur a recovery in the economy.
“Many jobs have been lost in recent years, and job growth in the past few years has been slower than it was during the recession,” said Sarah Kliff, senior economist at JPMorgan Chase.
“The Federal Open Price Index (FPU) has fallen since its peak in late 2009, and the unemployment rate has also fallen significantly since then.”
Jobs at the Fed are being cut at a time when the unemployment benefits are shrinking, as the US economy continues to contract.
The unemployment rate is now 10.9%, according to the Bureau of Labor Statistics, which is the lowest since the 1930s.
“There is an urgent need for continued support from the Federal Emergency Management Agency (FEMA) to address the financial and fiscal crisis that has led to the loss of more than a million jobs since the end of the recession in September 2009,” Kliff said.
A key part of the plan is to reduce the number of workers who are eligible for unemployment benefits, which were designed to be paid to workers who had been laid off by the financial industry.
The FPU is expected next month to show a decline of 0.1% from the March data, and a 0.2% drop in employment from December.
In addition to a number of job cuts, the Fed is also expected to cut the number and rate of lending to the financial sector.
The financial sector has been hit particularly hard by the economic downturn.
The financial sector, which employs around 15% of the US workforce, has been the hardest hit by the crisis, as more and more people are unable to get loans because they are too discouraged by the economy, or are in debt.
Jobs in the financial services sector have also been cut, with the average number of days workers lost since the beginning of the financial downturn falling to 7.5%.
The number of people receiving unemployment benefits has also been reduced by more than 20% since the crisis started, with more than 2.6 million people losing their benefits since March 2009.
“We are not going to be able to pay the costs of the recovery, and that means more job losses in the future,” Klamp said.