Report
Yellen Overestimates Labor Slack, Underestimates Need for Hikes
posted by Michael Lewis on April 08, 2016
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Indeed, Yellen implied that there could be “two or three years” of further improvement before the Fed needs to worry about a too-tight labor market stimulating inflation. Thus, she thinks, the FOMC is justified hiking rates very gradually.
Abstract
FMI’s Commentary on slack in the labor market and the FOMC’s perception of the same.