Federal Reserve Chair Janet Yellen and her merry band on the FOMC* seem determined to raise interest rates at their next meeting, which is scheduled for mid-September. If so, Friday’s “Employment Situation” report from the Bureau of Labor Statistics (BLS) probably won’t dissuade them.
The BLS report was mixed. The number of FTE** jobs increased by 486,000, mainly because of a decline in the percentage of jobs that are part time. However, labor force participation fell to yet another modern low, and year-over-year growth of the weekly wages of “production and non-supervisory workers” came in at only 1.8%.
There was nothing in the BLS report to suggest that the economy is “overheating” (which is something that seems to concern Keynesians, like the members of the FOMC). Meanwhile, on July 30, the Bureau of Economic Analysis (BEA) revised out of existence $321 billion (in 2Q2015 dollars) of the past three years’ real GDP (RGDP).
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