Janet Yellen testified for the first time as Chair of the Federal Reserve on Capitol Hill this morning. In her statement, she indicated the Federal Open Market Committee is poised to continue to curtail their asset purchases as labor market conditions improve. She reaffirmed the Fed’s 6.5% Unemployment threshold and 2.0% inflation rate target, but that those metrics are not viewed in a vacuum, and that a “notable change” in economic data would be
required to reverse reductions in Bond purchasing.
So what about the job market? The Job Opening and Labor Survey (JOLTS) shows that there are fewer job openings at the moment than at any time in the last 19 months.
That flat lining chart I showed yesterday has definitely found life this morning with Ms. Yellen’s testimony.