Biden’s Top Labor Expert Wants Fed to Run Economy Hot to Boost Jobs

  • Janelle Jones says joblessness hurts more than high inflation
  • Consumer prices rose at fastest pace in 30 years in October
Janelle JonesSource: Economic Policy Institute
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President Joe Biden’s top labor economist has a message for the Federal Reserve: run the economy hot.

Inflation remains largely transitory and linked to supply-chain and Covid-related issues, said Janelle Jones, the chief economist at the Department of Labor. But raising interest rates or reducing economic support for the economy too soon -- which many economists are urging to tame rampant inflation -- could spell disaster for the nascent jobs recovery, she said.