Economic Developments The Federal Reserve is committed to fulfilling our statutory mandate of stable prices and maximum employment. To begin with the labor market, many indicators suggest that the economy is close to full employment. In April, the unemployment rate was 4.4 percent, a level not reached since May 2007 and below most current estimates of the natural rate of unemployment (figure 1).
Additionally, we have taken several measures to ensure that euro area banks can pass on these low interest rates to the real economy, in particular where they are needed the most. The measures include providing banks with as much liquidity as they need – against adequate collateral.