It’s Too Soon for the Fed to Start Tapering

If the Federal Reserve needed further evidence that it should prolong its efforts to stimulate the U.S. economy, today’s jobs report provides it.

In mid-June, when the Fed set out plans to take its foot off the gas pedal by “tapering” its monthly bond purchases, the economy appeared to be on an upward trajectory. Employers were adding jobs at an accelerating pace, the ranks of the long-term unemployed were thinning, and the housing market was showing signs of life.