• 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.