Dallas Fed President Richard Fisher, a top Federal Reserve official, said on Tuesday that his main concern now was unemployment, not inflation.
He said another option the Fed might consider to signal its aims to markets was a target for unemployment, although this would be difficult because monetary policy alone was not responsible for creating jobs. Fiscal policy was also key.
Fisher kicked off his speech at a conference in Berlin with a reference to German policies in the 1920s that led to hyperinflation, saying that while inflation was not his main concern now, unlimited quantitative easing was risky…
Choosen excerpts by Job Market Monitor from
Federal Reserve Vice Chairman Janet Yellen backed a proposal to link the Fed’s zero interest-rate policy to progress toward meeting its goals for inflation and employment rather than to a calendar date. “The Committee might eliminate the calendar date entirely and replace it with guidance on the economic conditions that would need to prevail before … Continue reading »
Federal Reserve Bank of Atlanta President Dennis Lockhart said forceful central bank policies will remain needed to spur job growth even if Congress averts sudden tax increases and spending cuts at the end of the year. “I expect that continued aggressive use of balance sheet monetary tools will be appropriate and justified by economic conditions … Continue reading »
The Federal Reserve has reiterated that the US economy is only growing slowly, and that the country’s unemployment rate “remains elevated”. Yet it added that the housing market had “shown some further signs of improvement”. The comments came as the US central bank kept interest rates on hold at between zero and 0.25%, as had … Continue reading »
Fiscal policy, at both the federal and state and local levels: headwinds for unemployment reduction says Bernanke
The accommodative monetary policies I have reviewed today, both traditional and nontraditional, have provided important support to the economic recovery while helping to maintain price stability… Notwithstanding these positive signs, the economic situation is obviously far from satisfactory… Further, the rate of improvement in the labor market has been painfully slow. I have noted on …Continue reading »
In discussions about the Fed actions, it occurred to me that many of the explanations that link the Fed’s moves to stronger job growth leave out a number of steps in the middle. It’s of course not the case that the Fed buys MBS or announces they’ll keep rates low and jobs that weren’t there …Continue reading »
‘Three years after our worst recession since the Great Depression officially ended, the U.S. economy is still very weak’ writes Mark Weisbrot. The people most hurt by this weakness are the unemployed and the poor, and of course the two problems are related. We have about 23 million people who are unemployed, involuntarily working part-time, or have … Continue reading »
One of the main policies to reduce long-term unemployment is an active labor market policy. The OECD publishes each year data on Government investments in labor market programs like training and wage subsidies.
Gemany and the Scandinavian countries are champions of active labor market policies. This is well known. But, less known is the fact that the US are not. US investment in active labor market programs before the Great recession wasbelow the OECD average, nearly 4 times lower: 0.13% of GDP vs 0.48%.
Continue reading »
Fed up with the anemic pace of hiring, the Federal Reserve promised Thursday that it would do whatever it takes to reduce unemployment. The Fed stepped up its efforts to boost economic growth, opting for a … http://www.marketwatch.com/story/fed-will-do-whatever-it-takes-to-get-hiring-going-2012-09-13
Federal Reserve – FOMC statement – The Economy has gone from “expanding moderately” to “decelerated somewhat”
Information received since the Federal Open Market Committee met in June suggests that economic activity decelerated somewhat over the first half of this year. Growth in employment has been slow in recent months, and the unemployment rate remains elevated… The Committee expects economic growth to remain moderate over coming quarters and then to pick up …Continue reading »