On Feb 4, 2007, at 6:17 PM, Eugene Coyle wrote:
I keep reading in the financial press that the Fed is worried about inflation. Then the articles go on to explain that because of tight labor markets, the Fed is worried about inflation.I accept that the Fed is worried about inflation -- it always is -- and embraces that worry. But isn't the source of the current worry different from tight labor markets?
It's probably tight labor markets. The Fed doesn't like it when the unemployment rate gets too low. In the late 1990s, productivity growth was strong - now it's not. Doug
