It is looking more and more like the worst of all worlds for Federal Reserve policy makers.
As they get set to wind down the most stimulative monetary policy stance they’ve ever pursued, the officials confront an economy that by many key measures is running out of steam. The so-called soft patch of the first quarter has clearly extended beyond the boundaries of the first three months of the year. Evidence this week showed weakening rates of factory growth and more dreadful housing news. Worst of all, the May jobs report released Friday found only 54,000 new jobs created, as the unemployment rate ticked up to 9.1% from 9%.
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