- Purpose of QE was to push down longer term rates and I think it has been successful
- Economy faced severed headwinds from the crisis
- Measured taper will continue if economic outlook confirmed
Yellen
- Small part of decline in joblessness may be due to structural factors
- Broader measures of labor market suggest things not back to normal
- ‘An important portion’ of labor force participation structural but there are also cyclical factors at work
- Labor force participation fall is largely structural (demographics)
- ‘Some portion reflects’ discouragement, young people and prime age workers also dropping out
- I was surprised by Dec and Jan jobs reports but we have to be careful not to jump to conclusions
