Thursday, March 5, 2015

For the First Time in 30 Years, Unemployment Fell in Every U.S. State

We are clearly in the boom phase of the Fed manipulated economy.

Unemployment fell in every state and the nation’s capital last year—something that hadn’t happened since 1984.

Unemployment fell the most in Illinois, where the rate dropped 2 percentage points from the prior year to an average 7.1%. The rate declined by 1.8 points in Colorado, North Carolina and Ohio.

Unemployment across the entire U.S. fell 1.2 points to 6.2% last year.

Anyone who thinks a new around of QE is coming anytime soon, doesn't understand how the Fed operates. As I point out regularly in the EPJ Daily Alert,  te Fed is printing money aggressively without any current QE problem. Nothing is going to stop them except accelerating price inflation---and they will be way behind the curve in fighting that inflation. Indeed, by reading Fed FOMC minutes and policy statements, it's clear the Fed has no idea how aggressive the price inflation is going to be.

(via WSJ)


  1. The Fed is always too late. Too late to raise and lower interest rates.

  2. As much as I detest the Fed, I have to admit they have for the last 7 yrs re blown the bubble in
    RE,bonds and stocks. There will be a bust to follow to be sure, but if they reblew the
    last bubble, why couldn't they do it again?

    Corporate America follows the Zirp policy by borrowing at low rates and then by buying
    their own stock which reduces the supply of shares thus pushing up equities.
    The fed has created a free lunch economy for the elite.

    And if and when there is a 2008 melt down, you can book it that another wall street bail out policy
    will emerge.

  3. The real issue isn't what corporations do. It's what foreign investors will do if the Fed tries to commit to another bailout.