[The following is my Markets commentary for the week of September 1, 2014, Issue 4.40]   There has been much discussion in the FOMC about alternate indicators of labor market slack.  The Kansas City Fed put out a paper Thursday on their Labor Market Conditions Index (LMCI): http://www.kc.frb.org/publicat/research/macrobulletins/mb14Willis-Hakkio0828.pdf.  The authors looked at 24 labor market variables to come up with a measure of how the labor market is faring.  Yellen mentioned the FOMC looking at a similar model in her Jackson Hole speech. July 2014 is the last data point and that value is -0.6 (normalized so that the “historical…