The FOMC meets on Tuesday and, for the first time in several years, there is room for a genuine debate about whether the condition of the US labour market justifies the aggressively easy monetary stance which the Fed has adopted.
The February employment report showed strong growth in the number of jobs for the third successive month, taking both the main measures of employment gains into territory which is normally seen only during healthy economic expansions. However, as I commented in this piece for the FT’s A-List on Friday, it is dangerous to conclude that the labour market is now returning rapidly to normal. The Fed is likely to pause, but not to change its basic strategy. Read more