- Says ‘significant slack remains in labor markets’
- Normalization talks don’t mean imminent policy change
- Repeats low rates sen for considerable period post-QE
- Bond buying likely to end after October meeting
- Some lower-rated corporate debt values appear stretched
- Too many Americans unemployed
- Increases in Fed funds rate likely would occur sooner and be more rapid than envisioned if labor market conditions continue to improve more quickly than anticipated
- “Considerable uncertainty” surrounds FOMC projections for economic growth, unemployment and inflation
- Long term unemployed almost at record levels
- Policy can’t have job impact in specific states
- Long term unemployment is a grave concern
- Prefers using regulation to ensure financial stability but won’t take off table using policy for stability
- QE is not on a pre-set course
- Fed would have to lose confidence in labour market and see a rise in inflation to alter pace of QE
- Infrastructure investment would help counter any headwinds
- Hidden slack helped reduce labour force participation
- 6.5% unemployment rate has never been the Fed’s unemployment target
- Fed monitoring a broad range of labour gauges
- Fiscal policy has been unusually tight
- Low interest rates prompt a reach for yield
- Fed needs to monitor risks from low interest rates
- Doesn’t see broad financial stability risks at the moment
- Would never rule out restarting asset purchases
- Unemployment causes psychological trauma and often brings health costs