'Given the latest data, it would be irresponsible for the Fed to create much higher unemployment deliberately.'
The standard justification for Fed policy tightening is that it is needed to prevent a cycle of self-fulfilling expectations, with workers and businesses coming to expect higher inflation and setting wages and prices accordingly. But this cannot happen when inflation expectations are declining, as they are now.to get inflation back down to the Fed's target level.
Given the latest data, it would be irresponsible for the Fed to create much higher unemployment deliberately, owing to a blind faith in the Phillips curve's ongoing relevance. Policymaking is always conducted under conditions of uncertainty, and the uncertainties are especially large now.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
Mortuary schools see jump in enrollment amid funeral industry worker shortage'The shortage is so serious right now that there's a 90% job placement rate for graduates of these programs,' one program director said.
Les mer »
Surveillance video shows man breaking into Chicago lakefront restaurant amid rash of burglariesThe Chicago Police Department is warning lakefront restaurants and food stands about recent burglary incidents near Museum Campus.
Les mer »
Chicago weather: Flood Watch in effect for much of Chicago area amid heavy rain | LIVE radarCity officials say their 311 call center is experiencing a high volume of calls due to the heavy rain and encourage residents to submit reports of flooding online.
Les mer »
'Barbarian' is top film amid late-summer box office doldrumsLOS ANGELES (AP) — The horror film “Barbarian” won the weekend by bringing in $10 million, according to studio estimates Sunday, as the late-summer doldrums at the box office continued. Director Zach Cregger's debut from Disney's 20th Century Studios premiered at San Diego Comic-Con in July and opened Friday on 2,340 screens.
Les mer »
Russian Forces Retreat Amid Ukrainian CounteroffensiveUkraine has successfully pressed its swift counteroffensive in the northeastern part of the country even as a nuclear plant in the Russia-occupied south completely shut down in a bid to prevent a radiation disaster as fighting raged in the area. Ukraine’s quick action to reclaim Russia-occupied areas in the Kharkiv region forced Moscow to withdraw its troops to prevent them from being surrounded, leaving behind significant numbers of weapons and munitions in a hasty retreat as the war marked its 200th day on Sunday. The pullback marked the biggest battlefield success for Ukrainian forces since they thwarted Russia’s attempt to seize the capital of Kyiv at the start of the nearly seven-month war.
Les mer »