World News Insights
1-3 Minute Gist
Search, personalize, or simply browse. Follow the world around you from gist and context to insights.
Who we are | Our Credo | Ways of using Lyrarc | FAQ | Send Feedback | First Letter From the Editor
Sign up. It's free and easy to use
Create an account
to personalize your feed of articles and topics.
All Topics Article
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Keywords:
U.S. Federal Reserve chairman Ben Bernanke tells the House Financial Services Committee hearings that the Fed will give importance to underemployment, not just the unemployment rate, in making decisions about bond purchases. The unemployment rate could be a false indicator of the labor market if the rate falls below the Fed's goal of 6.5% before raising interest rates, and yet labor markets are still weak because of underemployment. Bernanke said: "There are a number of problems with the labor market. Unemployment is one problem, but long term unemployment and underemployment- and by 'underemployment,' I mean people either who are working fewer hours than they would like or possibly working at jobs well below their skill level- is also indicative of a weak labor market." In this situation of high underemployment combined with low inflation the Fed may hold off on raising interest rates when the unemployment rate reach 6.5%. In Bernanke's words: Reaching 6.5% unemployment "would not automatically result in an increase in the federal funds rate target." Since 2010 financial markets in the U.S., and to a lesser extent worldwide, have looked to U.S. Fed policy for raising interest rates, as guidance on the degree of support for the economy and by extension for markets.
U.S. Federal Reserve's 6.5% unemployment target with 2% inflation announced by Bernanke in Dec. 2012
01/27/2009
The U.S. Fed's chairman Bernanke says the Fed will keep rates low till unemployment reaches 6.5% citing "the tremendous waste in human potential" of high unemplyment rates. As long as inflation remains subdued at 2% the Fed will continue its current policy of low rates. In 2013 the Fed will continue bond buying at the rate of $85 billion a month. If unemployment drops to 6.5%, but this is because more people are dropping out of the labor market the Fed will take this into account, says Bernanke. The Fed will also keep an eye out for asset bubbles in the economy.
Grouped Articles
Stimulus and the Depression: The Untold Story
Wall Street Journal 09/26/2011
Fed Officials Try to Set the Market at Ease
Wall Street Journal 06/24/2013
Wall Street Journal 07/05/2013
Wall Street Journal 07/11/2013
FX HORIZONS: The Fed’s Risky Codependency with Markets
Wall Street Journal 07/11/2013
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
"Financial repression" as part of U.S. Federal Reserve policies to improve U.S. debt servicing and investors in bonds
05/21/2011
Grouped Articles
Wall Street Journal 05/11/2013
When Model Borrowers Bite Back
Wall Street Journal 05/28/2013
Wall Street Journal 05/29/2013
Bond Yields Jump to a Different Beat
Wall Street Journal 05/29/2013
Fed Officials Try to Set the Market at Ease
Wall Street Journal 06/24/2013
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
U.S. Federal Reserve's policy and actions in 2010-2013
08/27/2010
Grouped Articles
Fed Officials Try to Set the Market at Ease
Wall Street Journal 06/24/2013
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
In Surprise, Fed Decides to Maintain Pace of Stimulus
New York Times 09/18/2013
Economists See Nominee as Slightly More Dovish Bernanke
Wall Street Journal 10/10/2013
Yellenâs Path From Liberal Theorist to Fed Voice for Jobs
New York Times 10/09/2013
The Yellen Fed? Precise and Predictable
New York Times 10/09/2013
U.S. Federal Reserve and policies to counteract the effects of the "fiscal cliff" on GDP and economic growth in 2013
08/22/2012
Grouped Articles
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
Wall Street Journal 08/01/2013
In Surprise, Fed Decides to Maintain Pace of Stimulus
New York Times 09/18/2013
Economists See Nominee as Slightly More Dovish Bernanke
Wall Street Journal 10/10/2013
Yellenâs Path From Liberal Theorist to Fed Voice for Jobs
New York Times 10/09/2013
The Yellen Fed? Precise and Predictable
New York Times 10/09/2013
Why high unemployment and the high percentage of the long term unemployed is determining U.S. Federal Reserve interest rate policy in 2012-2014
01/27/2009
With 40% of the unemployed in the U.S. shown as long term unemployed, mismatch in skills and other structural problems with unemployment, the U.S. Federal Reserve policies of Fed chairman Bernanke are geared to addressing this problem.
Grouped Articles
Stimulus and the Depression: The Untold Story
Wall Street Journal 09/26/2011
Fed Officials Try to Set the Market at Ease
Wall Street Journal 06/24/2013
Wall Street Journal 07/11/2013
FX HORIZONS: The Fed’s Risky Codependency with Markets
Wall Street Journal 07/11/2013
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
Economy May Be Getting Its Wings Clipped
Wall Street Journal 07/30/2013
The U.S. Federal Reserve's exit strategy from a loose monetary policy - 2011-2015
05/18/2011
Grouped Articles
Fed Officials Try to Set the Market at Ease
Wall Street Journal 06/24/2013
Wall Street Journal 07/11/2013
FX HORIZONS: The Fed’s Risky Codependency with Markets
Wall Street Journal 07/11/2013
Once Again, the Fed Shies Away From the Exit Door
Wall Street Journal 07/11/2013
Bhidé and Phelps: Central Banking Needs Rethinking
Wall Street Journal 07/16/2013
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
U.S. Federal Reserve policy after the March 2012 Labor Department Jobs report
06/15/2011
Grouped Articles
Fed Officials Try to Set the Market at Ease
Wall Street Journal 06/24/2013
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
Candid Criticism for Fed That Wasnât on the Agenda
New York Times 11/08/2013
Jobs Data Justify Bernanke Concerns but Don’t Push Fed to Quick QE Move
Wall Street Journal 04/06/2012
Next Week’s Tape: Trifecta of Inflation Data On Tap
Wall Street Journal 04/06/2012
Fed Holds Rates Steady, but Outlooks Shift
Wall Street Journal 04/25/2012
The U.S. Federal Reserve's policy and actions in 2012-2016
06/15/2011
Grouped Articles
A Hawkish Signal Bernanke Didn't Send
Wall Street Journal 06/25/2013
Wall Street Journal 07/11/2013
FX HORIZONS: The Fed’s Risky Codependency with Markets
Wall Street Journal 07/11/2013
Once Again, the Fed Shies Away From the Exit Door
Wall Street Journal 07/11/2013
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
In Surprise, Fed Decides to Maintain Pace of Stimulus
New York Times 09/18/2013
Insights into the thinking of Janet Yellen and Ben Bernanke for a strong labor market before increasing interest rates
07/18/2013
Yellen is expected to look beyond the unemployment rate target of 6.5% set by Bernanke in Dec. 2012, and give emphasis to the long term unemployed. Bernanke also mention the under employment rate as an additional factor to consider.
Linked Articles
Don’t Expect Job Data Alone to Persuade Fed on Rates
New York Times 01/23/2014
Bernanke Plays Down Link Between Jobless Rate, Fed Moves
Wall Street Journal 07/18/2013
We took a different way to help millions around the world build educated informed mindsets that affects and shapes their lives. For a future that is open, global and digital, with everyone having access to high quality information. We believe in the renewal of America, renewal of Europe, the renewal of India, the rest of Asia, Latin America and Africa. The renewal of our supply chains, health, education, infrastructure, as we rebuild our countries after the pandemic. Literacy and knowledge we believe cannot thrive and grow in a world of web bots, web crawlers, or AI. This requires human curiosity, human learning, and human imagination. We take as inspiration the saying- “One has to be free, and as broad as sky. One has to have a mind that is crystal clear, only then can truth shine in it.” Every contribution whether big or small is precious- in this crisis and ahead.
Support Lyrarc from as small as $1
Terms and Conditions | Copyright Policy | Privacy Policy | Contact Us