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The 'New Normal' Unemployment Rate: 6.7%

Monday, February 14, 2011 - 4:19 PM
From CNNMoney.com:
Economists used to say an unemployment rate around 5% was normal, but the recession may have changed all that.

The new norm may now be more like 6.7%, according to a paper released by the Federal Reserve Bank of San Francisco Monday.

Perhaps the Fed will start hiking rates sooner if there's a new higher norm.
1
Ken TuminKen Tumin5,468 posts since
Nov 29, 2009
Rep Points: 125,029
1. Wednesday, February 16, 2011 - 4:52 PM
Minutes from the last Fed meeting indicate they expect the economy to grow faster but unemployment to remain high. They will continue their buying of Treasuries under QE2. Undoubtedly to keep the stock markets going into the stratosphere and creating yet another bubble.

http://voices.washingtonpost.com/political-economy/2011/02/fed_projects_us_gdp_may_grow_u.html
2
ShorebreakShorebreak2,603 posts since
Apr 6, 2010
Rep Points: 14,091
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