Yellen: Unemployment Rate 'Less Rosy' When You Count Part-Time, Discouraged Workers

[Geee]

CNS News:

(CNSNews.com) - Federal Reserve Chair Janet Yellen said Tuesday at a Senate Banking Committee hearing that the U-6 unemployment rate--which includes people who are working part-time for economic reasons and those who are marginally attached to the labor force--“definitely shows a less rosy picture” of employment in the country.

 

People "marginally attached" to the labor force "are those who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for one work sometime in the past 12 months."

 

In January, according to the Bureau of Labor Statistics, the "U-3" unemployment rate, which is the one generally reported, was 5.7 percent. U-6 was 11.3 percent.

[Geee]

Did Fed's Janet Yellen Just Say Economy's Weakening?

Monetary Policy: If it's true, as the White House and media have been saying for months, that the economy is gathering momentum, why did Janet Yellen just tell us the Fed is putting off plans to hike interest rates?

Despite mediocre monthly job and GDP reports, Obamanomics enthusiasts — both inside the administration and in the media — keep telling us how great things are. But there was the Fed chairwoman on Tuesday begging Congress not to audit her bank, then mentioning that, oh, by the way, she won't be increasing rates soon.

"The FOMC's assessment that it can be patient .. . means that the committee considers it unlikely that economic conditions will warrant an increase in the target range for the federal funds rate for at least the next couple of FOMC meetings," Yellen told the Senate Banking Committee.

Yes, the central bank continues to be a model of patience. And maybe that's a good thing. Because if the economy's doing so well, why would the Fed be promising not to raise interest rates?

If economic growth is indeed picking up, then — based on the Fed's own faulty models — inflation should soon be climbing above the 2%-a-year level the Fed deems dangerous.

That means rate hikes would be required.

 

http://news.investors.com/ibd-editorials/022415-740677-yellen-testimony-suggests-economy-weaker-than-thought.htm

[SrWoodchuck]

Sweet @Geee!

 

 

Via TheoSpark