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Fed’s Tarullo: Uncertainty Over Labor Market Slack Means Fed Must Proceed ‘Pragmatically’

Wall Street Journal (04/09/14) Victoria McGrane

Policy makers should be careful when assessing economic inflationary pressures because the labor market is still underperforming, according to U.S. Federal Reserve Gov. Daniel Tarullo. Policy makers should be pragmatic and wait for evidence that labor markets have tightened enough to trigger pressures that could push inflation above the Fed’s 2% target, he said. Unemployment figures, the number of long-term jobless, and the number of part-time workers who want full-time jobs indicate a weak job market.