top of page

How the Federal Reserve Has Influence Over Employee Engagement

According to a Bloomberg survey, it is expected that the central bank will pause interest rate increases for the first time in 15 months, allowing the economy to digest the 5 percentage points of rises that have already been implemented. However, with inflation slowly returning and the labor market remaining strong, around one-third of those surveyed anticipate another rate increase in July.

Things to look out for: Important economic indicators will be released throughout the week. On Tuesday, the U.S. Department of Labor will publish the Consumer Price Index for May, which measures the rate of inflation in consumer goods prices. On Wednesday, the Producer Price Index for May will be released, tracking the change in prices charged by domestic producers for their output. The Federal Reserve will announce interest rates and economic projections on Wednesday, with Chair Jerome Powell holding a press conference. On Thursday, the U.S. Department of Labor will release the report on initial jobless claims for the previous week, indicating the number of people filing for unemployment benefits. Additionally, the U.S. Commerce Department will release the Retail Sales report for May, measuring consumer purchases of various items both in stores and online. Overall, these events and reports will provide insights into the state of the economy, inflation trends, and the labor market, shaping expectations for future monetary policy decisions by the Federal Reserve.

How this ties into employee engagement

Employee engagement plays a pivotal role in the success and growth of businesses. If there is little engagement from employees, there is high turnover. In this evolving, rising, and uncertain climate, employee turnover is at an all time high.

As the economy continues to evolve, organizations are increasingly recognizing the importance of fostering a sense of partnership and collaboration among all stakeholders (including employees) involved. The shift towards a knowledge-based society from all parties within a company offers opportunities for engagement.

When workers have a clear comprehension of the economic dynamics at play and how that information affects their organization, they can better grasp how their individual efforts contribute to the overall success and sustainability of the business and their own career. This understanding empowers employees to align their actions with the company's goals, making them more invested in their work and fostering a sense of purpose and meaning aka engagement.

Moreover, employee engagement and economic understanding can foster a sense of partnership between owners, managers, and employees. By embracing these principles, businesses can create an environment where employees are more engaged and motivated, leading to improved performance and engagement.


bottom of page