To interpret or anticipate Federal Reserve policy actions, one must inhabit the mind of the Fed chairman, and see what he (or she) sees. Under Paul Volcker, money supply data ruled the Fed from the late 1970s through the mid- 1980s. Labor market data moved to the fore under Alan Greenspan, then rose to target status under Ben Bernanke. Now, Janet Yellen is elevating discernment of US labor market data to new heights.
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