Paul H. Kupiec | AEIdeas
Tight labor markets, low real interest rates, and large federal budget deficits are a textbook recipe for inflation, and yet inflationary expectations remain contained. What makes Chairman Jerome Powell think he can sustain the current expansion while maintaining historically low unemployment and a low and stable inflation rate? Join AEI on Friday when a panel of experts will discuss these and other issues related to Federal Reserve monetary policy.
by Raghuram Rajan via The Washington Post
The U.S. economy certainly appears as if it is in an ideal place: unemployment is at its lowest in nearly half a century, and the number of people voluntarily leaving jobs to find new ones, an indicator of their confidence in the economy, is at a 20-year high. Economic growth this year is likely to be around 3 percent, more than what most economists think the economy is capable of in the medium term. Inflation is moderate.