Economics
Yellen's Bell-Bottoms Era Plan Has Critics Singing the Blues
- Strategy of `high-pressure economy' may risk future inflation
- Some worry Fed policy makers again trying to do too much
Summers: No Reason to Raise Rates Now
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Janet Yellen is pursuing a monetary policy with echoes from an era of bell-bottom jeans and New York Knicks’ basketball championships. And that’s got some economists worried.
In an unorthodox move, the Fed chair has signaled her intention to keep interest rates low enough to temporarily push unemployment modestly below its long-run natural rate. She described in a speech last month how a tight job market could entice discouraged workers back into the labor force, expand full-time employment, boost wages and possibly enhance efficiency.