Federal Reserve could ease stimulus sooner rather than later

Federal Reserve could ease stimulus sooner rather than later

New York Times: News that the unemployment rate fell to a five-year low increases the likelihood that the Federal Reserve will ease stimulus efforts soon.

Still, many observers cautioned the encouraging figures from the Labor Department on Friday do not necessarily mean the central bank will act when policy makers meet later this month. A move early next year, they said, is more likely.

“We think the chance of tapering this month has risen, but on balance we expect the Fed to wait a bit longer,” said Ian Shepherdson, chief economist at Pantheon Macroeconomics.

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