Wall Street Journal (10/19/14) Pedro Nicolaci Da Costa
At its upcoming meeting, Federal Reserve Bank of Boston president Eric Rosengren says, the U.S. Federal Reserve will end its bond-buying program, noting that it could hold off on raising interest rates if overseas weakness takes a bigger-than-expected toll on the U.S. economy. In a recent interview with the Wall Street Journal, Rosengren said that “being focused on getting labor markets back to where we think full employment is is, I think, the most tangible way that monetary policy can impact income equality.”
Although he did not give a time line, he said the central bank should begin raising short-term interest rates when the economy is one year away from full employment and at the 2% inflation target. “We tend to talk in terms of the U-3 measure of unemployment, but the reality is the part-time for economic reasons is still quite high relative to what we’ve historically seen at this kind of unemployment rate. To me that indicates that there’s a good chance that even if we got to 5-1/4%, we still may have more labor market slack than we’ve had historically,” Rosengren said. “We do want to get inflation back up to 2%, and if we need tighter labor markets than we’ve historically needed in order to do that, then we should allow the unemployment rate to drift further down.”
New Webinar: CareerBuilder Staffing and Recruiting Talent Brief
As many as 75% of staffing and recruiting professionals say some of their currently existing talent acquisition and human capital management roles will be completely automated using technology over the next 10 years. Find out how this will impact your business.