The Fed’s Lacker (who’s in the media more than Ryan Seacrest lately) says there is a debate about the labor market behavior but that the unemployment rate remains “very elevated”.
In my mind, the longer the uncertainly about the US economy lasts, the more negative it becomes. Prior to the credit crisis, consumers and businesses were naturally inclined to spend and invest even when the outlook was cloudy. In the post-crisis world, caution reigns.
