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6/30, 9:33 PM (Source: TeleTrader)
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Headline unemployment 'deeply flawed' measure - Fed's Kashkari

President of the Federal Reserve Bank of Minneapolis Neel Kashkari (pictured) said on Tuesday that the headline unemployment rate is "deeply flawed" as a measure of joblessness, as it does not count all people who aren't currently working.

Speaking at a webinar organized by the National Association for Business Economics, Kashkari said he doesn't know whether it "would work" to use monetary policy to target black and Hispanic unemployment directly, as opposed to focusing on the headline figure, but said the Fed should be open-minded on the issue.

However, Kashkari stressed that the Fed needs to do much better in achieving its primary dual mandate, stable prices, and maximum employment, which would then benefit lower-income workers and minority communities that are not participating fully in the labor market.

Breaking the News / SR