SAN RAMON, Calif./NEW YORK |
SAN RAMON, Calif./NEW YORK (Reuters) – The pick-up in jobs has caught the eye of two top Federal Reserve officials who said on Wednesday that continued improvement in the beleaguered labor market dampens prospects for more economic stimulus measures from the central bank.
San Francisco Fed President John Williams and Richmond Fed President Jeffrey Lacker pointed to better-than-expected data in recent months that show the U.S. unemployment rate dropped to 8.3 percent, a still-high level that casts intrigue on the Fed’s next move to boost the economy, if any.
The stronger labor market has investors buzzing over whether the Fed will ultimately decide to launch a third round of so-called quantitative easing, or QE3, through more asset purchases.
The central bank may yet need to buy more bonds to bolster the weak recovery, but the jobs data make it a “close call,” Williams told reporters after a speech in San Ramon, California.
Further Fed stimulus “is not
Read More from the Article Source: Full Article
