The Fed is not averse to adopt the approach of the Bank of England

Officials of the Federal Reserve System (FRS ), think about how they announce changes in their forecasts at rates tied to unemployment . First, the U.S. central bank would start to raise rates when unemployment drops to 6.5%. But when she began to rapidly decline, he calmed markets by stating that rates will not change for a long time after reaching this threshold.

According to RBC TV , unemployment in February was 6.7 % , and then some Fed officials said that the target level of unemployment in the future central bank may give up completely. President of the New York Fed , William Dudley believes that now is the time , because the official unemployment rate does not reflect adequately the real economic situation.

U.Dadli method praised the Bank of England , who last summer have just three conditions are necessary for the rate hike – unemployment is not higher than 7 % , inflation is under control and stable financial system . And when unemployment is close to that level , the central bank turned his attention to other crises . Because of low wages and a large number of people with part-time employment , the Bank of England decided to continue to keep rates low .

According U.Dadli , such an approach would help now and the Fed – less specific numbers and more general assessment of the state of the economy. Despite the decline in unemployment, the U.S. labor market there is still a lot of problems – the lack of wage growth , a large proportion of unemployed people who can not find a job for over six months , etc.

The Fed is not averse to adopt the approach of the Bank of England