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Returning workers could slow rate hike

Wednesday, October 19, 2016 - 01:23

Workers returning to the labor force in unexpected numbers and landing jobs could slow the Fed's timing in raising interest rates. Conway Gittens reports.

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Inflation is heating up and unemployment is heading down - just like the Federal Reserve wanted them to - all the pieces now in place for Fed Chief Janet Yellen to finally start raising interest rates. But the Fed doesn't seem to be in a rush.. and this might be one reason why.. Reuters Fed Correspondent Howard Schneider: SOUNDBITE: HOWARD SCHNEIDER, FED CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "There's evidence over the last couple of years that people who were out of the labor force - sort of on the sidelines, not looking for a job at all - have been coming back in and getting work at a pretty unprecedented pace. So the fact that people are coming off the sidelines, directly into jobs, is really encouraging for Janet Yellen and maybe a reason why the Fed wants to see this process continue as long as possible." So Now the Fed - that has tried everything in the book to get the economy going again - is willing to stand-by and wait to see how this plays out… But slow to move, doesn't mean no move. SOUNDBITE: HOWARD SCHNEIDER, FED CORRESPONDENT, REUTERS, (ENGLISH) SAYING: "It looks like they are going to make another move in December." And the rate hikes in 2017 may be few and far between. Another experiment by a Federal Reserve willing to do what it takes until the economy is strong enough to make it on its own.

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Returning workers could slow rate hike

Wednesday, October 19, 2016 - 01:23