The Fed's New Worry is Something Between Inflation and Deflation
Janet Yellen, chair of the U.S. Federal Reserve.
Photographer: Andrew Harrer/BloombergThis article is for subscribers only.
Prices go up and prices go down. At the Federal Reserve, a bigger worry now is that they stay the same.
U.S. central bankers are betting the economy is near an inflection point where demand is strong enough to create more jobs, eventually nudging both wages and prices higher. A report Friday showed payrolls in the past three months rose the most in 17 years while wages showed the biggest gains since 2008, reinforcing views the threshold is close.