Surprising Way America Could Bring Down Inflation Rates

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( – American women have been able to join the workforce in historically high numbers following the emergence of flexible working hours and greater parental leave access. This could potentially help the U.S. economy grow further while also bringing down interest rates and inflation rates.

Over the next five years, it is expected that 3.3 million women are going to be joining the labor market, this is following years of stagnation that started in the 1960s but had been leveled off three decades later. The greater number of women in the workforce could also lessen the expected effects of millions of Americans retiring or exiting the workforce within the next few years. The pandemic has also led to an increased number of people leaving the workforce which could have a negative effect on future economic growth.

However, if women continue to join the workforce at an increased rate an Oxford Economics analysis found that an additional 0.2 percent would be added to annual economic growth within the next five years. This would lessen the possibility of the U.S. entering a recession. Many economists believe that the Federal Reserve’s increase in rates to a two-decade high is going to result in a recession in the coming years.

Oxford Economics analysts further stated that women entering the workforce could also result in an increased chance of a “soft landing.” This is a reference to an environment where the labor force and economy do not experience a lot of damage as a result of the high rates that were used to help reduce inflation.

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