(Answered) Fed is split over time of rate riseSaveIn October 2009, the Fed was forecasting that unemployment…

2. How does unemployment affect the Fed’s decision on rate hikes?
Unemployment signals slack in the economy and affects inflation pressure. High unemployment reduces wage growth and lowers inflation risk, which supports keeping rates low. Falling unemployment can raise wage inflation and push the Fed toward tightening. The FOMC examines unemployment alongside wage data, labor participation, and productivity to set policy timing.