Lunchtime Must-Read: Jan Hatzius: Goldman Disagrees With The Fed On Labor Market Slack
on labor market slack. While the unemployment rate is now below 6% and the explicit phrase in the FOMC statement that ‘…underutilization of labor resources is gradually diminishing…’ is factually correct, the implicit notion that underutilization is no longer ‘significant’–the term used in the July and September statement–looks inconsistent with the employment and wage data…