Wall Street Journal (05/21/14) Jon Hilsenrath

Minutes of the U.S. Federal Reserve’s April 29-30 policy meeting detail a debate about the “slack” in the labor market and whether this slack will suppress inflation and wages. Federal Reserve chairman Janet Yellen argues there is considerable slack in the labor market, citing the country’s many part-time workers who want permanent jobs. While that view is popular at the Fed, it is not universal.

“Some participants reported that labor markets were tight in their districts or that contacts indicated some sectors or occupations were experiencing shortages of workers,” the Fed minutes said.

The minutes also show officials believe the economy is improving, despite a first-quarter setback.