SAN FRANCISCO/WASHINGTON, Feb 11 (Reuters) – Federal Reserve
officials are debating a historic shift in one of its core
economic gauges that could lead the central bank to move even
slower than now thought once it lifts its rates from rock
According to interviews with half a dozen current and
former Fed policymakers and staff, the concept that the economy
can produce far lower levels of unemployment without stoking
inflation is being built into Fed models and becoming
increasingly entrenched in the central bank’s views.
Fed’s Yellen to testify at U.S. Senate on Feb 24 – WSJ, Reuters
By Ann Saphir
(Reuters) – Traders on Friday added to bets that the Federal Reserve will begin raising rates by mid-year after a government report showed U.S. employers added more jobs than expected last month and wages rose.
U.S. employers added the most jobs over a three-month period since 1997, the report showed. Wages rose at their fastest pace since August. With the recovery gaining steam, analysts said, the Fed may not need to keep rates at rock-bottom for much longer.