Tyler Schipper, an economics associate professor at the University of St. Thomas College of Arts and Sciences, recently spoke with Marketplace about the Federal Reserve’s decisions around interest rate adjustments and the impacts interest rates have on various aspects of the economy.
From the story:
And low interest rates can help spur employment. If rates begin to rise, that can negatively impact the job market. For example, higher rates make it tougher to borrow money to build an apartment complex, said Tyler Schipper, an associate professor of economics at University of St. Thomas.
“When that apartment complex doesn’t get built, it means that general contractors don’t need to hire as much labor, which means that manufacturers that produce metal parts that go into those buildings don’t need as many workers,” Schipper said. This also affects real estate developers and construction workers, he added.
