When Federal Reserve officials meet next week for their regularly scheduled policy meeting, they will be considering lots of economic data including Friday's stronger-than-expected jobs report. The unemployment rate last month fell to 7.7%, the lowest rate in four years. November payrolls rose 146,000—about 50% more than forecast.
Alice Rivlin, former vice chair of the Fed, says the jobs report is reassuring but it does not portend a change in Fed policy.
"The Fed has been communicating that it's going to continue its current policy," Rivlin tells The Daily Ticker. "It's going to buy bonds and keep a low interest rate for the foreseeable future. I don't see why this jobs number is going to influence that."
Rivlin says she would probably vote in favor of the Fed's current policy of low rates and bond purchases if she was still vice chair. But she does have doubts about it.
"I don't think [Fed policy] is dangerous….but I don't think it's doing much marginal good," she notes.
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