Decision Economics Senior Adviser and Chief U.S. Economist Cary Leahey says a low U.S. unemployment rate is good for GDP.

SHOWS: NEW YORK, USA (JANUARY 12, 2015) (REUTERS - ACCESS ALL)

1. DECISION ECONOMICS, SENIOR ADVISER AND CHIEF U.S. ECONOMIST, CARY LEAHEY, SAYING:

JOURNALIST ASKING CARY LEAHEY: 'We also saw the unemployment rate falling to 5.6 percent, the lowest level since June 2008 but that was sort of largely due to a lot of people dropping out?'

LEAHEY: 'That's right, the problem with the unemployment rate in any given month is that the drop in the rate can be a sign of weakness rather than strength for precisely the reason. The unemployment rate drops because a lot of people decide not to look for jobs. There was a small increase in the survey used to produce the unemployment rate but it was nothing like the gains you saw in payrolls. So that really does overstate things, the economy doesn't feel like a 5.6 percent unemployment rate economy, it feels like it's at least a percentage point higher than that. So that is another reason why the Fed is a bit cautious, at - 5, 6 you'd be saying why didn't the Fed hike last year but there are a lot of other things going on and you have a lot of discouraged workers not looking for jobs.'

JOURNALIST: 'Alright, so what do you think these numbers might mean for GDP?'

LEAHEY: 'Well the GDP implication is very good, it is not only how many additional workers you add but how many hours people like you and me who are already employed are working and that number is quite vibrant in the fourth quarter up about 3.5 percent in the annual rate. So it is possible you might get a 4 percent GDP growth rate in the fourth quarter which is obviously very good. In particular it is important to remember that the old historical average growth rate of 3 percent may now be closer to 2 percent given all that went on since 2007. So a 4 percent number looks even better than what it would look like 10 or 15 years ago.'