Tags: Evans rule, Fed, Inflation, knocking down the goalposts, qualitative descriptions, unemployment
For years, the Fed’s been waiting for unemployment to get under 6.5%, so that it can stop offering money for free. This has taken somewhat longer than the central bank likely expected when the threshold was set, and now, the man who came up with the idea wants to make sure it doesn’t make the same mistake again.
The “cut rates when unemployment drops below 6.5% if inflation hasn’t gotten over 2.5%” policy is apparently called the “Evans rule” for Chicago Fed President Charles Evans. And while Paul Volcker plans to use his remaining days defending the regulation that bears his name, Evans isn’t eager to see a sequel. Read more »
Tags: Fed, Paul Ryan, shutdown sequel averted, The Great Taper and other myths and legends, unemployment
Among the many reasons given by the Federal Reserve for their reluctance to buy, say $80 billion in bonds each more instead of $85 billion, is that U.S. policymakers continue to refuse to make policy. Like, say, policy to keep the government operating.
Well, Boehner Ryan & Co. have decided that they will let the government keep operating—this time—and will even let it spend a few more bones. Can they have their taper now?
Sen. Patty Murray (D., Wash.) and Rep. Paul Ryan (R., Wis.), who struck the deal after weeks of private talks, said it would allow more spending for domestic and defense programs in the near term, while adopting deficit-reduction measures over a decade to offset the costs….
Some investors say that the deal could push forward the Federal Reserve’s taper timetable. In September when the central bank surprised investors and kept its $85 billion-a-month bond-buying program in place, it cited the looming budget battle as a reason for caution. But now, that risk has diminished.
Progress of a sort, but, well, no: You’re probably not getting your taper next week. Read more »
Tags: fill in the expletive, jobs, occasionally semi-reliable sources, unemployment
So, a couple of states—a big one and a small one, to be precise—screwed up a little in reporting unemployment claims to Washington. No big deal, right? Read more »
Tags: jobs, Labor Department, shrugs shoulders, unemployment
Unemployment claims are up a little.
Initial jobless claims, a proxy for layoffs across the U.S., rose by 7,000 to a seasonally adjusted 343,000 in the week ended July 20, the Labor Department said Thursday. Also, the prior week’s figure was revised to 336,000 new claims from an initially reported 334,000. Economists surveyed by Dow Jones Newswires had expected 340,000 new claims would be filed in the latest week.
But they’re getting easier to predict! Read more »
Tags: AIG, commencement speeches, deal with it, encouragement, Robert Benmosche, unemployment
Robert Benmosche is still putting the finishing touches on his commencement address of hope. Read more »