Officials of the Federal Reserve System (FRS ), think about how they announce changes in their forecasts at rates tied to unemployment . First, the U.S. central bank would start to raise rates when unemployment drops to 6.5%. But when she began to rapidly decline, he calmed markets by stating that rates will not change for a long time after reaching this threshold.
According to RBC TV , unemployment in February was 6.7 % , and then some Fed officials said that the target level of unemployment in the future central bank may give up completely. President of the New York Fed , William Dudley believes that now is the time , because the official unemployment rate does not reflect adequately the real economic situation.
U.Dadli method praised the Bank of England , who last summer have just three conditions are necessary for the rate hike – unemployment is not higher than 7 % , inflation is under control and stable financial system . And when unemployment is close to that level , the central bank turned his attention to other crises . Because of low wages and a large number of people with part-time employment , the Bank of England decided to continue to keep rates low .
According U.Dadli , such an approach would help now and the Fed – less specific numbers and more general assessment of the state of the economy. Despite the decline in unemployment, the U.S. labor market there is still a lot of problems – the lack of wage growth , a large proportion of unemployed people who can not find a job for over six months , etc.
