The way Federal Reserve Chair Jerome Powell sees it, the U.S. labor market has a long way to go to meet the central bank's maximum employment goal and a lot of boxes to tick along the way.
Sept 17 The way Federal Reserve Chair Jerome
Powell sees it, the U.S. labor market has a long way to go to
meet the central bank's maximum employment goal and a lot of
boxes to tick along the way.
Judith Ramirez received a letter this month that she'd been dreading: The Honolulu hotel that furloughed her from a housekeeping job in March, during the lockdown triggered by the coronavirus pandemic, made her layoff permanent.
In the week since the Federal Reserve made a landmark shift in its approach to monetary policy, details are emerging on what it could look like in practice, with two Fed policymakers on Thursday saying they'd be comfortable with leaving interest rates near zero even if inflation rises to levels not seen on a sustained basis in some 30 years.
NEW YORK The Federal Reserve's understanding of the relationship between employment and inflation has shifted and determining when to raise interest rates will depend more on the trajectory of inflation than the exact level, Atlanta Fed President Raphael Bostic said on Thursday.
U.S. business activity and employment ticked up through late August, the Federal Reserve said on Wednesday, but economic growth was generally sluggish as COVID-19 hotspots hampered reopening efforts that fueled an early-summer rebound.
The U.S. Federal Reserve's new framework for setting monetary policy makes it clear that a strong labor market on its own is not cause for concern unless there are signs of inflation or financial stability risks, Cleveland Fed Bank President Loretta Mester said Wednesday.
Lower interest rates around the globe make it more difficult to use monetary policy to stimulate the economy, but the Federal Reserve's new framework leaves the U.S. central bank better positioned to hit its goals on inflation and employment, New York Federal Reserve Bank President John Williams said on Wednesday.
NEW YORK A day after rolling out a new strategy for U.S. monetary policy, Federal Reserve officials on Friday diverged over what it might mean in practice, saying there is no exact formula for the average inflation rate they plan to target.