Could it be that the fed cannot see the size of the “gig economy” and throwing the baby with the bath water when hiking rates?

The fed keeps saying there is a strong labor force and it’s hiking interests rates to deal with inflation so more people get fired and increase unemployment, that kills demand and controlling inflation.

Here is an older article showing that before the pandemic some saw this issue of the fed not having a good working knowledge of how to calculate freelance jobs.

But now after the pandemic when so many people found ways to make money with different means like Uber, YouTuber, freelancer, etc this obviously is just a lot more.

https://www.govexec.com/management/2020/02/gig-economy-and-bls-surveys/163089/

The fed has a limited set of tools so it makes sense but in doing rate hikes but it seems the increase in rates will do more harm than good.

And maybe all that it’s needed is the different government agencies to target all these platforms. From taxes to copyright and maybe some extra legislation to get more info and so on.

Or simply by knowing the amount of poeple are able but not working because they rather be a half ass YouTuber selling get rich stock videos than waiting tables or dealing with fast food places, will help the government asses better ways to deal with labor shortage.

I just doing think it’s a coincidence that the strong labor force issue is happening now. Maybe boomers retiring or people having savings but to me, seeing the size of these platforms and it’s valuations makes me think that the gig economy is a lot more widespread than everyone thinks and it’s what keeping older industries from finding employees.

Also, just to make sure it’s clear… the rates are affecting all stocks.