New Fed chair's 'dashboard' of job-market gauges
Source: AP-Excite
By CHRISTOPHER S. RUGABER
WASHINGTON (AP) - The Federal Reserve on Wednesday downplayed the unemployment rate as a guide to the U.S. economy's health. But Janet Yellen, the new Fed chair, didn't leave investors in the dark.
Instead, she listed five gauges that make up her "dashboard" for tracking the economy. She also specified, in some cases, when those measures would signal a healthy economy.
The issue arose because Fed policymakers, like many economists, worry that the unemployment rate might be overstating the health of the economy. The rate has fallen by a full percentage point in the past year. But much of the drop occurred because fewer Americans are working or looking for work. The government doesn't count people as unemployed unless they're actively searching for jobs.
For those who want to track the economy along with Yellen, here are the items she listed during a news conference Wednesday, her first as Fed chair:
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Federal Reserve Chair Janet Yellen smiles during her first news conference at the Federal Reserve in Washington, Wednesday, March 19, 2014. The Federal Reserve is seeking to clarify when it might start to raise short-term interest rates from record lows. The Fed also says it will cut its monthly long-term bond purchases by another $10 billion to $55 billion because it thinks the economy is strong enough to support further improvements in the job market. (AP Photo/Susan Walsh)