Arab Today, arab today fed divided over improvement of us jobs market
Last Updated : GMT 03:28:10
Arab Today, arab today
Arab Today, arab today

Fed divided over improvement of US jobs market

Arab Today, arab today

Arab Today, arab today Fed divided over improvement of US jobs market

The US Federal Reserve
Washington - AFP

Federal Reserve policymakers showed increasing divisions in their last meeting over how much the US jobs market has improved, a key factor in deciding how soon they should tighten policy.
While the participants of the July 29–30 Federal Open Market Committee remained nearly unanimous in their support for the existing Fed policy course, the minutes of the meeting, released Wednesday, showed an intensifying debate over plans for raising interest rates late next year.
The record showed the discussion increasingly focused on how much the labor market has tightened and how that would impact inflation, which has remained modest so far.
So-called inflation hawks outside the Fed, and a small number inside the central bank, have been calling for an accelerated schedule to increase the benchmark Fed funds rate, which has been held near zero for nearly six years.
The minutes suggested that there were more hawkish views on the FOMC than just the known dissent of Charles Plosser, the head of the Fed's Philadelphia branch.
They showed that several FOMC members felt the sharp fall in the unemployment rate to 6.2 percent from 7.3 percent a year ago, was a good indicator of the tightening situation.
But others said the high numbers of long-term unemployed and part-time workers represented continued slack, or weakness in the market, that could not be seen in the jobless rate.
Despite the jobless rate having fallen quickly, "many participants continued to see a larger gap between current labor market conditions and those consistent with their assessments of normal levels of labor utilization," the minutes said.
Economists generally see a tightening labor market as likely to push up wages, fueling an acceleration of price rises.
So far, however, that has not happened. The US consumer price index rose just 0.1 percent in July and 2.0 percent year-on-year, and real wages have increased just 0.3 percent in one year.
The more hawkish views on the Fed panel argued that there were solid signs of improvement, including the diminishing number of long-term unemployed and part-time workers.
A couple participants argued as well that changes in the labor market could mean that wage pressures in fact "might not be a reliable leading indicator of higher inflation."
If they are right, inflation could pick up, forcing the Fed's hand on interest rates, without any sign of rising earnings in the jobs market.
That will likely be one of the issues debated when central bankers, led by Fed Chair Janet Yellen and the European Central Bank chief Mario Draghi, gather for three days starting Thursday in Jackson Hole, Wyoming for the Fed's annual policy symposium.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fed divided over improvement of us jobs market Arab Today, arab today fed divided over improvement of us jobs market

 



Arab Today, arab today

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today fed divided over improvement of us jobs market Arab Today, arab today fed divided over improvement of us jobs market

 



Arab Today, arab today France defies terrorism through tourism

GMT 15:18 2017 Saturday ,20 May

France defies terrorism through tourism
Arab Today, arab today Zainab Fadel Oglu designs “Shakerin” mosque

GMT 12:13 2017 Thursday ,11 May

Zainab Fadel Oglu designs “Shakerin” mosque
Arab Today, arab today Seeks to move past rift with Israel

GMT 08:00 2017 Monday ,08 May

Seeks to move past rift with Israel
View News in Arabic - Business: مصارف
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Mozambique's gas boom dream under threat

GMT 16:29 2017 Monday ,08 May

Mozambique's gas boom dream under threat
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Jaguar displays XF Sportbrake line

GMT 14:36 2017 Monday ,08 May

Jaguar displays XF Sportbrake line
Arab Today, arab today BMW sees forecasts in reach

GMT 09:04 2017 Thursday ,04 May

BMW sees forecasts in reach
Arab Today, arab today Climate science: Bad news gets worse

GMT 08:48 2017 Saturday ,06 May

Climate science: Bad news gets worse
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday