The Federal Reserve had said that a 6.5% unemployment rate target would be one of the two measures it would use in guiding decisions about monetary policy.
However, Fed Chairman Ben Bernanke has also said that the current unemployment rate may be misrepresenting the health of the job market.
"If a substantial part of the reductions in measured unemployment were judged to reflect cyclical declines in labor force participation rather than gains in employment, the Committee would be unlikely to view a decline in unemployment to 6-1/2 percent as a sufficient reason to raise its target for the federal funds rate," said Bernanke in a recent testimony to Congress.
For economists trying to forecast when the Fed will taper its quantitative easing program and tighten monetary policy, these comments complicate things a bit. Fed Labor Force Participation Rate Notes - Business Insider