Our Market Optics chartbook contains data-driven insights that power our portfolio management teams’ views, ideas, and decisions. Each week, we’ll take a look a closer look at one of the charts.
This week’s topic: U.S. economy: Labor market healing.
- The unemployment rate bottomed in February 2020 at 3.5%. It then surged to 14.7% in April. As of August, it has improved to 8.4%. There is still a lot of healing that needs to happen, but it looks like the economy is at least headed in the right direction.
- The Federal Reserve (Fed) said its new operating framework will emphasize shortfalls from maximum employment rather than worrying about how low or high the unemployment rate is. This could raise the bar in terms of when the Fed might eventually hike rates. Instead of worrying about low unemployment leading to inflationary pressures, the Fed will likely highlight how shortfalls from maximum employment lead to low inflation and there is little to worry about too high of employment.
Get more charts and insights like this by downloading our Q2 Market Optics chartbook today.
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