Collective Conscious

Ygle­sias:

We’re start­ing from a steep labor mar­ket reces­sion. My view is that means we need to be aim­ing for a period of rapid catch-​​up growth to reduce unem­ploy­ment and restore the econ­omy to full capac­ity. But the FOMC meekly “antic­i­pates that the unem­ploy­ment rate will decline only grad­u­ally toward lev­els that the Com­mit­tee judges to be con­sis­tent with its dual man­date.” If the unem­ploy­ment rate is not cur­rently at a level con­sis­tent with the man­date and is also not con­verg­ing rapidly toward a level con­sis­tent with the man­date, then in my view the FOMC ought to do some­thing new and dra­matic in order to ful­fill its man­date. Instead, the FOMC is stand­ing pat. They think 9.1 per­cent unem­ploy­ment and mod­er­ate growth is fine and they don’t intend to do any­thing about it.