When low unemployment was meaningful

From the BLS today: 38K Payroll and 4.7% unemployment!

Will the Parrots at the FOMC continue to think the labor market is “overstretched”? Or will they revise their views to contemplate that their monetary policy is totally inadequate?

They could learn something from a historical comparison. In the “good days”, this same low rate of unemployment went hand in hand with about the same low rate of inflation. However, the growth rate of real output was in a very different league!

Those were the days

Update: And the Fed knows why!

Those were the days_1

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