The Traderszone Network

Published in TZ Latest News 14 May, 2014 by The TZ Newswire Staff

Job market debate rages at Fed, likely keeping rates on hold

Economists within the Federal Reserve are struggling to size up the strength of the U.S. labor market but can’t even agree what yardstick to use. Andreas Hornstein, a senior adviser at the Richmond Fed, says the unemployment rate, currently at 6.3 percent, effectively captures the level of slack in the labor market. To Mary Daly, a top economist at the Fed’s regional branch in San Francisco, a full assessment should go beyond the jobless rate to take into account stagnant wages, the large numbers of long-term unemployed and a drop in labor force participation.

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