When the United States Federal Reserve Board (Fed) raises or lowers interest rates it chains a reaction. In the employment field, the macroeconomic monetary policies established by the Federal Reserve (Fed) affect the general willingness and ability of many organizations to expand or contract employment, reason why many companies watch Fed policies to plan ahead for human resources strategies.
Particularly, If unemployment is high, the federal loan rates reduction seeks to stimulate the economy, that businesses can expand with low loan rate and ultimately hire more workers to operate new divisions or production processes. Therefore, if the Fed reduces interest rates the number of jobs will be expected to increase.