Analysis: Fed might consider itself powerless over unemployment

08/18/2010 | Economist (free content), The · CBS MoneyWatch

Many who follow the U.S. economy closely have been wondering why the Federal Reserve isn't moving aggressively to cope with unemployment, and a speech by Federal Reserve Bank of Minneapolis President Narayana Kocherlakota might contain part of the answer, according to The Economist. Most of the joblessness is structural, the result of a mismatch between unemployed workers' skills and ones needed by businesses -- a problem that monetary policy can't fix, Kocherlakota said.

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Economist (free content), The · CBS MoneyWatch

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