Beckworth on jobs, the Taylor Rule and Fed policy
US employment figures came out on Friday and showed employers added 295,000 jobs in February while the unemployment rate dropped to 5.5 percent. The declining unemployment rate – from 5.7 percent in January to 5.5 percent in February – took unemployment to its lowest level since May 2008. This significantly beat Wall Street’s expectations. Economists were anticipating payrolls to rise by only 240,000 jobs. Erin weighs in.
Then she’s joined by David Beckworth – assistant professor of economics at Western Kentucky University and adjunct scholar at the Cato Institute. David tells us why a one-size-fits-all interest rate policy works in the US but not Europe and gives us his take on why the Fed has kept rates at zero despite an improving economy. He also explains that the Taylor Rule would say the Fed’s policy stance right now is just about neutral.
After the break, Boom Bust Producer Bianca Facchinei takes a look at how the consistent rise in rent has affected city planning and the real estate market. The comes Defining Moments, featuring the most interesting comments made by our guests this week, including remarks from Rob Barnett, Victor Matheson, Alex Daley, Paul Craig Roberts, and Anthony Randazzo.
And in The Big Deal, Erin, Bianca, and Edward Harrison review comments posted on the Boom Bust social media pages. Take a look!
Check us out on Facebook:
Follow us @