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Are Initial Jobless Claims a Useful Gauge of Labor Market Conditions?
Along with inflation measures, Federal Reserve officials pay close attention to labor market indicators in maintaining the dual mandate of price stability and maximum sustainable employment. Since early 2023, our blog posts have concerned the first side of the balance: inflation persistence, the predictive content of different inflation components and the content horizon of core PCE. In this On the Economy blog post, we shift our focus to the second side: labor market conditions.
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