Robert Kaplan, Dallas Fed President has said that there is a view that the labor market is projected to be at or already past the levels of full employment, as he hinted that the world might see a case which is weaker for the lowering of interest rate.
On Tuesday, Kaplan has written that he is still looking at the current rates of interest as a rough appropriate for economy of United States. He further that there is a projection by him that there is going to be no change in rate through the end of the year 2020.
Kaplan has said that he expects that there is going to be a solid level of growth in the year and there is projection that the headline rate of unemployment has been going down from a level of 3.6% to the rate of 3.5%. Kaplan has pointed further to ta participation rate of the labor force around 63.4% which is the highest level it has been since the month of June 2013.
Kaplan has written that all of this has suggested to the economists of Dallas Fed that it is going to be at or past this full employment level.
The description of Kaplan of the market of labor revives a similar language from the officials of Fed in the year 2015 and year 2016, when the policymakers have felt that the rate of unemployment might not fall below the level of 5.0% without the pressures of inflation. The fed had started to hike the rates as it cited a labor market which looked like being close to the goal of maximum possible employment mandated by congress.