Like gains in the equities markets, recovery in the economy doesn’t go straight up. In spite of recent good news about job growth, the Fed chairman made it clear on Monday, March 26 that FED policy would remain in accommodative stance. The markets liked this news, rising in triple-digit fashion in response.
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The months of December through February each saw employment gains of 245,000 jobs, causing a jobless rate decline to 8.3% from 2009’s high of 10.2%. Improvements have not been felt for a long enough time to reflect real growth. They may simply indicate a resurgence of hiring after the long recession. The employment number has improved enough for the Fed chairman to concede the improvement
may be real. Employment levels, however, are still far above normal—as much as 3 percentage points than the 20-year average before the crisis began.