Disappointing jobs report raises questions over Fed forward guidance

federal reserve

The US unemployment rate dropped from 7% to 6.7% in December as more people dropped out of the labour force but just 74,000 new jobs were added, according to the US Bureau of Labor Statistics – raising questions about the applicability of the Federal Reserve's 6.5% unemployment rate "threshold" as a token of robust economic recovery.

While the Fed has recently downplayed the importance of its 6.5% threshold by emphasising that reaching it will not necessarily trigger a tightening of monetary

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account