As of August 3, 2017, updates to the labor market conditions index (LMCI) have been discontinued. We decided to stop updating the LMCI because we believe it no longer provides a good summary of changes in U.S. labor market conditions. Specifically, model estimates turned out to be more sensitive to the detrending procedure than we had expected, the measurement of some indicators in recent years has changed in ways that significantly degraded their signal content, and including average hourly earnings as an indicator did not provide a meaningful link between labor market conditions and wage growth.
Using similar rationale, the Fed ought to disband itself.
Mike “Mish” Shedlock