BEYOND THE NUMBERS
Today’s strong jobs report shows continued solid growth in payroll employment, and many other labor market indicators have recovered substantially since the Great Recession. Nevertheless, the Federal Reserve should not rush to raise interest rates. By testing whether it can push unemployment lower — rather than raise rates to avoid any risk of inflation — the Fed could bring more workers back into the labor force, help more long-term unemployed find work, and begin to generate solid wage gains for most workers.
Stay tuned for my statement with further analysis.