Economics
Solid Hiring Without Wage Jump Tests Fed Hopes for Inflation
- ‘Nobody understands the inflation process,’ Slok Says
- August jobs report to sharpen rate-hike debate inside Fed
U.S. Adds 151,000 Jobs in August, Jobless Rate at 4.9%
This article is for subscribers only.
It took more than a decade for Paul Volcker and Alan Greenspan to wring persistently high inflation from the U.S. economy. Federal Reserve officials now may need at least half that time to bring too-low inflation back to their target.
Fed Chair Janet Yellen, Vice Chairman Stanley Fischer and most other U.S. central bankers remain confident further improvement in the labor market will gradually lift prices to the central bank’s 2 percent objective. That’s become a divisive assumption as the Federal Open Market Committee heads into a meeting later this month.