As November Payrolls Fall, Fed's Toolbox Is Limited

The Labor Dept.'s November report revealed a downward jobs spiral and raises concern about the effectiveness of monetary policy to combat the recession

The loss of 533,000 nonfarm jobs in November, announced in the Labor Dept.'s employment report released on Dec. 5—after huge revisions to the payroll loss numbers reported for September and October—makes clear that the U.S. economy hit a brick wall in September and has been spiraling downward ever since. The nation's various economic data will set many post-Depression records during the coming two quarters as the "Great Recession" takes hold. Certainly we are in for a nasty slew of economic reports through the holiday season.

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