More than 2 million unemployed Americans are at risk of losing their jobless benefits over the next three months. That threatens to undermine the unemployment rate as an anchor for future Federal Reserve action.
The Federal Reserve should lower its jobless-rate threshold for raising interest rates to 5.5 percent if it takes both the unemployment and participation rates into account, keeping its main interest rate lower for longer, according to Goldman Sachs Group Inc. research.
U.S. stocks advanced, sending the Dow Jones Industrial Average to a record close, as Federal Reserve officials said economic weakness warrants continued stimulus and investors await data this week on jobs and growth.
The Federal Reserve’s policy of seeking to drive down the U.S. unemployment rate is effective, and the level of slack in the economy justifies an accommodative stance, according to two separate papers by top Fed officials.
Federal Reserve projections for where the federal funds rate will be in 2016 are a central piece of information being released in conjunction with the policy- maker meeting ending today, said Goldman Sachs Group Inc. chief economist Jan Hatzius.
The U.S. Federal Reserve won’t make major policy changes regardless of who leads the central bank after Chairman Ben Bernanke’s term ends in January, said Jan Hatzius, Goldman Sachs Group Inc.’s chief economist.
As speculation grew that Federal Reserve Vice Chairman Janet Yellen would be nominated to lead the central bank, her appointment book beginning in April became peppered with meetings with the titans of finance.