How the Fed Lost Its Faith in ‘Full Employment’

Federal Reserve officials believed that the labor market was about as good as it could get. They were wrong. It seems like there are many people on the sideline that are trickling back into the job force and who are not counted as unemployed since they have been out of the job market for over 6 months or more.  Furthermore, the wages have remained stagnant which also signals a weaker economy than projected.