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Labor force participation has continued to decline, and, although some of this decline reflects longer-term trends that were in place prior to the crisis, some of it likely reflects potential workers' discouragement about job prospects.
The encouraging news is that the headwinds I have mentioned may now be abating.
Ben Bernanke Gives Final Speech As Fed Chairman
As a result, at the appropriate time, the FOMC will be able to return to conducting monetary policy primarily through adjustments in the short-term policy rate.
Description: We often speak of the Federal Reserve or other institutions as if they were autonomous actors.