Evans adds new demands in order to cut stimulus

|By:, SA News Editor

The falling unemployment rate is not necessarily indicative of a strong jobs market because it's been accompanied by a "dramatic" fall in the labor force participation rate, Chicago Fed boss Charles Evans tells an audience. Therefore, he would need to see not just unemployment at 6.5%, but an accompanying rise in labor force participation and solid increases in GDP growth before he would be comfortable dialing back stimulus. Is he outlining the beginning of NGDP targeting by the Fed?

"Only the data can tell us how much progress we’ve made, and they aren’t saying much right now."