Inside The Jobs Report: Still No Sign Of ZIRP/QE Impact—Even Tho The Fed Is Close To Done
Meanwhile job growth has remained constant whether QE was going full bore, or was in a pause as in part of 2010, and again in 2011-12. Ben Bernanke’s theory was that stock price gains resulting from QE would stimulate jobs. After 5 1/2 years of massive Fed balance sheet expansion, it’s apparent that he was wrong. A 13% gain in stock prices in the past 12 months has not moved the needle on jobs growth or labor earnings.