In assessing labor market slack, we try to distinguish between the effects of cyclical fluctuations in the economy and the influences of  1  2  A number of studies have found that the Federal Reserve’s asset purchases put downward pressure on longterm interest rates.
These include Joseph Gagnon, Matthew Raskin, Julie Remache, and Brian Sack (2011), “The Financial Market Effects of the Federal Reserve’s Large-Scale Asset Purchases,” International Journal of Central Banking, vol. 7 (March), pp. 3–43; and Stefania D’Amico, William English, David LópezSalido, and Edward Nelson (2012), “The Federal Reserve’s Large-Scale Asset Purchase Programs: Rationale and Effects,” Economic Journal, vol. 122 (November), pp. F415–46.