Fed Fear Of The Jobless Rate

It may be a faulty inflation signal

Though they welcome the Federal Reserve's latest cut in short-term interest rates, economists Mickey D. Levy of NationsBanc Capital Markets Inc. and Joseph Carson of Dean Witter Reynolds Inc. both believe that Fed policy remains far too restrictive in the face of growing economic weakness. As they see it, the largest roadblock to a substantial easing of monetary policy may well be the Fed's unjustified concern regarding the low unemployment rate.

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