- "Fed officials have been discussing for several months whether to lower the unemployment threshold as a way to convince markets that they will keep short-term interest rates low for a long time," writes Jon Hilsenrath, joining the chatter begun yesterday by Goldman's Jan Hatzius, who suggests the Fed is set to lower to 6% from 6.5% the unemployment rate threshold at which it would begin hiking the Fed Funds rate.
- Hilsenrath also refers to a recent Fed research paper positing unemployment would fall faster if the central bank promised to keep rates near zero for longer.
- The San Francisco Fed's John Williams is skeptical, telling an audience a lower threshold wouldn't tell anybody anything they don't already know.
- Treasurys (TLT -0.2%) seem to like the idea, the 10-year yield falling 3 bps to 2.64%.
- Long-duration Treasury ETFs: TBT, TLT, TMV, TBF, EDV, TTT, TMF, ZROZ, TLH, SBND, DLBS, VGLT, UBT, TLO, FSA, LBND, TENZ, TYBS, DLBL.
Lowering unemployment threshold under discussion at Fed
From other sites
Video at CNBC.com (Tue, 3:07PM)
Video at CNBC.com (Tue, 1:30PM)
Video at CNBC.com (Tue, 11:46AM)
Video at CNBC.com (Tue, 10:41AM)
Video at CNBC.com (Tue, 9:03AM)
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs