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The monthly BLS report has a great deal of influence on the actions of the Fed...

The monthly BLS report has a great deal of influence on the actions of the Fed (central bank) concerning interest rates. Characterize the type of report that might convince the Fed to lower its interest rate targets.

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Answer #1

Lowering the interest rate targets is a type of Expansionary monetary policy, which is implemented when the economy is in a state of falldown or recession.

As per the BLS report stating unemployment numbers, if the report states high unemployed numbers and less jobs created in the economy, then the Fed will have to look into the matter and implement expansionary monetary policy and reduce interest rates. This reduction in Interest rates will increase money supply in the economy and thus consumer incomes and demand for goods and services, which will induce firms to increase output and thus hire more labor.

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