, Columnist
America’s Economy Has Broken the Curse of the ‘70s
Cheaper energy is a boon to workers and the Fed.
Oil prices no longer drive the U.S. economy.
Photographer: David McNew/Getty Images North AmericaThis article is for subscribers only.
The Federal Reserve spent the past several years shifting to a policy framework that emphasizes employment more and inflation less. This made it more patient with business cycle expansions, which is one reason median household incomes grew more in the late 2010s than they did in the late 1990s.
But an unappreciated hero in facilitating this policy shift is the energy revolution that has transformed domestic energy markets.