Goldman's Jan Hatzius — We Disagree With The Fed

"[W]e disagree with the committee’s view on labor market slack," Goldman Sachs' Jan Hatzius wrote in a note to clients. "While the unemployment rate is now below 6% and the explicit phrase in the FOMC statement that '... underutilization of labor resources is gradually diminishing ...' is factually correct, the implicit notion that underutilization is no longer 'significant' — the term used in the July and September statement — looks inconsistent with the employment and wage data." 

In his argument, Hatzius highlighted two labor market indicators: the labor force participation rate (LFPR) and the rate of involuntary part-time employment.…

It's not until early to mid-2016 when Hatzius sees labor market slack actually disappearing.

Business Insider
Goldman: We Disagree With The Fed
Sam Ro