Plosser: Labor Participation Rate Down Since 2002

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Feb. 28 (Bloomberg) -- Philadelphia Federal Reserve President and CEO Charles Plosser discusses the U.S. economy and the labor participation rate on Bloomberg Television's "Bloomberg Surveillance." (Source: Bloomberg)

Charles plosser is with us from the philadelphia fed.

You are looking at that.

Should more americans me in the labor force?

Should is a hard question to answer.

They are not in the labor force.

Participation rates have been declining for more than a decade.

It has been declining since 2000. a lot of that has to do with baby boomer's. those people are retiring and they lead the labor force.

Chairman yellen has had a lot of this in her speeches.

Can the fed help the american labor economy directly?

It is hard for us to do.

We cannot find to the labor including -- economy.

So many things affect it.

We cannot control all of those things.

If you cannot control them, who do you want to control them?

Which institutions do you have to throw responsibility back to?

The marketplace and fiscal policy issues and regulatory policy issues.

All of those things matter.

The challenge is never just one thing.

We all look for a silver bullet.

The world does not work that way.

He just described a baseball strategy of the philadelphia phillies.

Chairman yellen talking about the need for other measures besides raising rates.

What you think she is talking about?

What is she getting at?

The fed has a large balance sheet.

As we unwind and try to move to more normal policy, we have to manage the exit.

What are the tools?

We look at term deposits where we freeze reserves so they cannot pull out of the banking system.

There is a facility we look at, there are a whole bunch of technical tools we are using to control the flow of reserves as we exit this.

I had economists right in with suggestive questions.

What would you consider the neutral fed stance?

That depends on what they mean.

In terms of the funds raised in its balance sheet.

They usually refer to the neutral rate as the long run average of the --.

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


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