| As pointed out by the Fed Chairman Janet Yellen, how much slack there is in the U.S. labour market is still up for debate. The Fed uses a Labour Market Conditions Index, which consists of 19 factors. The undertone is that the underuse of the labour force is still big although a few Fed governors have been saying that the interest rates will rise sooner than expected.
The ECB governor surprised the market by saying for the first time that both the fiscal and monetary policies are necessary to stimulate aggregate demand, which means there is room for more asset purchases and possibly QE and more fiscal policy flexibility from the governments...............................................Full Article: Source
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