CNNFN writes article about Has the Federal Reserve messed up?:
by Heather Long @byHeatherLong April 1, 2016: 12:14 PM ET
215,000 jobs created in March
215,000 jobs created in March
America’s central bank has two goals: get the country to full employment and
keep the costs of goods stable.
The Federal Reserve can put a fat check mark next to those goals. So
why is the central bank so hesitant to raise interest rates from almost
near zero?
The U.S. is adding jobs at a pace that would leave the new Tesla
Model 3 in the dust. March was yet another stellar month of hiring.
Unemployment is at 5%, a level many economists consider full strength.
Even workers who gave up hope are starting to look for jobs again.
That’s how positive the jobs picture is.
Inflation isn’t quite a home run, but even that is getting close to the
goal. The Fed’s target for a healthy economy is 2% inflation. The
central bank’s favorite inflation gauge — a statistic known as the
core Personal Consumption Expenditure index — is now 1.7%. The
other typical measure of inflation (CPI) is also rising.
Still, the Fed hesitates.
The Fed’s missed opportunity
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