Unemployment rate of 7.6% overstates health of labor market; Fed missing on both side of dual mandate; Highly accommodative monetary policy is appropriate for foreseeable future; Could be after US unemployment rate could hit 6.5% well before Fed hikes rates; Fed policy to remain highly accommodative; Economic positives: Housing, autos, state of household balance sheets, house and asset prices firmer, economy creating jobs in the face of fiscal headwinds, improved banking system; Risks to watch: Early to say we’ve weathered fiscal restraint, very low inflation rate- committed to defending inflation target from the low ... (full story)