US: Jobs target the big one to hit for Fed

After seeing the jobs market play a major part in the political jousting that was the US election campaign earlier this year, the country’s unemployment rate is now being used as an economic marker, the US Federal Reserve Bank has announced.
Thu, 13 Dec 2012

After seeing the jobs market play a major part in the political jousting that was the US election campaign earlier this year, the country’s unemployment rate is now being used as an economic marker, the US Federal Reserve Bank has announced.

It says that as long as unemployment lies above 6.5%, it will continue to keep interest rates near zero and probably until at least mid-2015.

According to the Bureau of Labor Statistics, unemployment in the US has been above 6.5% since October 2008, peaking at 10% 12 months on, but has since descended to this November’s 7.7% mark.

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