There is a strong possibility that February's labour market figures, due out this Friday, will only make the Fed's job even harder. There is a chance that the unemployment rate could have hit the 6.5% threshold in February. Even if it doesn't reach the threshold quite that soon, it will within the next couple of months. Under those circumstances, we would expect the Fed to keep going with its taper. It will also need to revise its forward guidance on when it might begin to raise its policy rate from near-zero.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services