Central Banks
Fed’s Jefferson Says High-Pressure Job Markets Ease Inequalities
- Fed vice chair also warns of damage from inflation to workers
- Long, low-inflation expansions make for shared prosperity
Federal Reserve Vice Chair Philip Jefferson said long economic expansions have been shown to help reduce economic inequalities, endorsing the notion that running a “high pressure” labor market could create new opportunities for workers.
At the same time, he stressed that high inflation erodes the benefits of a hot labor market.