What should the Fed do?

What should the Fed do about significantly better than expected American jobs data? Nothing: “If the improvement in the labor market turns out to be real, there’s still a long way to go. Employment fell much further in the recent recession than in previous postwar downturns, and has come back only slowly. More than five years on, jobs still haven’t returned to their pre-recession peak, and the working-age population has grown. When the U.S. last grew its way out of a recession of remotely similar depth — from 1983 to 1986 — employers added an average of 240,000 jobs a month. Today’s good news doesn’t get the economy back to that rate” – comment the editors of Bloomberg.com.