Quoted: Despite unemployment remaining low, Laura Dresser, associate director of the COWS economic think tank at the University of Wisconsin-Madison, said increased layoffs are tied to the Federal Reserve’s efforts to curb inflation by raising interest rates.
“There’s federal policy focused on trying to cool economic growth,” she said. “I think it’s also the case that the economy remains — in spite of that — quite robust in terms of demand for workers. The unemployment rates are staying low and new workers are coming into the labor market.”
Steven Deller, professor of agriculture and applied economics at UW-Madison, said it remains to be seen whether the economy will experience the “soft landing” the Fed is hoping for.
“The debate is not whether or not the economy is going to slow down, it’s whether or not we’re going to go into a recession or not,” Deller said. “And the general consensus is that we probably are going to go into a recession. The debate really is, how severe will it be?”