Fed Celebrates Unemployment With Bigger Punch Bowl

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June 23 (Bloomberg) -- In today's "Single Best Chart," Bloomberg's Scarlet Fu displays the break in the trend of the relationship between the Fed funds rate and the U.S. unemployment rate. She speaks on "Bloomberg Surveillance."

-- interest rates and unemployment.

With this last week as a guest host for the unemployment rate has not driven the fed policy lately.

The fed funds in white.

" unemployment rate, which is yellow.

That was the case until the financial crisis.

The expense of past three years represents a break in the trend.

When unemployment first began to dip, it was so high that it was not think a bowl that you would have -- thinkable that you would have tightening.

But it is falling fast.

The white line does not come up.

The story is, the fed funds, they have not raised the rates.

The last time in employment was this rate and falling was exactly 20 years ago, spring 1994. the fed was tightened quickly.

Joining us, tobias levkovich, who put his head in the punch bowl after the tie last night between u.s. and portugal.

The fed just won't raise rates.

Everybody thinks it is how much liquor you're pointing to the punch bowl.

What they have done is took the bottle back, by tapering -- but they are still pouring it in.

But at a slower rate so you can keep the party going on.

There's a point in which it will take that bottle fully away and try to just pour in punch.

What happens then?

Wiki get a little disruption and markets -- we could get a little disruption in markets.

And that is a volatility you're predicting for 2015? we thought we would get more volatility this year.

Most indicators say it will happen and it might happen because of that regional -- i have to rip up the script.

Was that the clearest discussion of the punch bowl you've ever had on "surveillance"? whitney to put together a video with -- we need to put

This text has been automatically generated. It may not be 100% accurate.


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