A Bank of America Merrill Lynch research note on the abysmal nonfarm payrolls number for June contained this graph:
A February 2010 Big Picture post on slack in the labor market contained this graph:
My comment at the time, which holds true today:
I’d postulate that only when this gap starts to close meaningfully will we have to consider the possibility that the Fed will tighten and/or that inflation might be somewhere out there on the horizon. Until then, it’s very hard to envision they’ll consider moving off their ZIRP.
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.