With the price of oil plumetting and mid-east oil producers fearful of losing market share if they cut production, bankers are getting ready to raise interest rates to keep jobs from being created. Higher borrowing costs for business and consumers will result in less need to give pay raises and expand employment.
Now that consumers have more leverage with lower gasoline prices, banks are likely to hook their rates onto increased spending so that employers will even have even less incentive to employ more people.
Despite the economy being weak for employees, its been good for businesses.
When businesses look to hire workers, they may also be forced to give pay raises in a slightly more competitive job market. This and cities and states raising their minimum wages will not negatively impact corporate profits of companies like Wal-Mart, but the banks will want to be ready to turn up the heat on consumers borrowing at the same time.
Steady inflation is important for Americas central bank as it increases profits from borrowing and weeds out less productive aspects of the economy by forcing those businesses to close, and forcing layoffs.
Low interest rates and banks have not been the strength behind Americas slow recovery from a depression.
At the time when cheap borrowing would undoubtedly help the economy, banks are out to profit from Americas recovery and recessions and make sure their cycle is predictable enough to win no matter how poorly the American worker is doing.
Janet Yellen, the chief banker of Americas central bank, says that an improving job market will help raise inflation. What she means is that the banks will soon be able to take advantage of slow growth in 2015 and have an excuse ready to do so.
http://www.hellenicshippingnews.com/...in-u-s-or-u-k/Wages did rise in both the U.S. and the U.K. during the quarter, but in the U.S. productivity rose more rapidly. That means that across the economy as a whole, the labor cost of producing a unit of gross domestic product fell. In the U.K., productivity rose almost as fast as wages.