Victory State Bank Asks: How Much Unemployment Can The U.S. Handle
STATEN ISLAND, N.Y. -- The Federal Reserve System (http://www.federalreserve.gov) is the central bank of the United States. It was founded by Congress in 1913 to provide the nation with a safer, more flexible, and more stable monetary and financial system. Over the years, its role in banking and the economy has expanded.
While viewing the central bank’s Web site, Victory State Bank found that among the questions most frequently asked of the Federal Reserve is: What is the lowest level of unemployment that the U.S. economy can sustain?
This is a striking question, particularly in today’s difficult economy.
http://www.federalreserve.gov/ “Even in good times, a healthy, dynamic economy will have at least some unemployment as workers switch jobs, and as new workers enter the labor market and other workers leave it. The lowest level of unemployment that the economy can sustain is difficult to determine and has probably changed over time due to changes in the composition of the labor force, and changes in how employers search for workers and how workers search for jobs.
“As of June 22, 2011, Federal Reserve policymakers estimate that, with appropriate monetary policy and without unexpected shocks to the economy, the unemployment rate in the longer run (that is, perhaps in the next five to six years) will decline to a range between 5 and 6 percent.
“Though a variety of factors influence the level of unemployment in the economy, the Federal Reserve makes monetary policy decisions that aim to foster the lowest level of unemployment that is consistent with stable prices.”
About Victory State Bank:
VSB Bancorp, Inc. (NASDAQ: VSBN) is the one-bank holding company for Victory State Bank. As Staten Island, N.Y.’s only community-based commercial bank, Victory State Bank operates five full-service locations on the Island: The main office in the community of Great Kills, and branches in the communities of West Brighton, St. George, Dongan Hills and Rosebank. For additional information, Victory State Bank may be reached at 718-979-1100 or visited online http://www.victorystatebank.com .
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