On Tuesday, Federal Reserve Chair Janet Yellen promised the House Financial Services Committee “a great deal of continuity” in monetary policy as she fills the shoes of Ben Bernanke.
However, Yellen is not Bernanke. And depending on her read on the economy, she will use her powers to influence the direction of monetary policy via the Federal Open Market Committee.
So what is Yellen watching out for?
Morgan Stanley economists Dane Vrabac and John Abraham answer this question in this new presentation distributed to clients.
It’s a catalogue of 31 charts that have individually been cited by Yellen as informing her view.
Thanks to Morgan Stanley for giving us permission to feature this presentation.
Duration of unemployment is important because the longer you're out of the job, the more your skills erode.
We can't ignore the underemployed, which include the folks who aren't captured by the main unemployment rate.
The Beveridge Curve measure labour market efficient by showing the evolving relationship between unemployment and job openings.
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