- Fed faces a ‘large amount of uncertainty’ on jobs
- Fed probably can’t fix all the damage
- Rise in inflation signals US nearing maximum employment
The last point is one that Bullard and Kocherlakota have been making but the bulk of the Fed doesn’t seem to agree. A lively debate is occurring at the Fed (and in the markets) about the true strength of the jobs market.
I don’t see how anyone can argue that the US is near full employment but I’ll defer to the academics.
