The effectiveness of Federal Reserve initiatives on Black American hiring

.I wrote a piece for Politic365.com about the effect of Federal Reserve initiatives on the unemployment rate for Black Americans.  Since the Federal Reserve has a double mandate; to stabilize prices while promoting full employment, I decided to look at the relationship between the fed funds rate and the unemployment rate for Black Americans.

While the fed funds rate, the overnight lending rate between banks, has fallen almost 100% since the end of 2007, black unemployment has increased over 50% during that same time period.  What I did not include in the piece was the Federal Reserve’s asset- backed securities purchases over that same period.  They have increased as well, helping to put cheap money into the system while Black American unemployment continued to rise.

Admittedly I did not investigate thoroughly any causal link between Fed initiatives and Black American employment, but I would not be surprised that lower borrowing rates provided some companies the opportunity to invest in automation versus hiring lower skilled workers, a group within which Black Americans are historically over represented.

You can check out the article here.   

About Alton Drew

Alton Drew brings a straight forward and insightful brand of political market intelligence. Alton Drew graduated from the Florida State University with a Bachelor of Science in economics and political science (1984); a Master of Public Administration (1993); and a Juris Doctor (1999). You can also follow Alton Drew on Twitter @altondrew.
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One Response to The effectiveness of Federal Reserve initiatives on Black American hiring

  1. Pingback: Opinion | theReadList

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