Monetary Policy: Continuity—For Now
· In her testimony to the Congress, the new Fed Chair called for continuity and suggested that the unemployment rate alone could not provide an adequate picture of the labor market.
· Inclement weather continues to restrain the economy, with weaker retail sales and more evidence of adverse employment effects.
· Industrial production unexpectedly dropped in January corroborating the picture painted by last week’s ISM manufacturing figure, which declined markedly.
