So what if we get to "too full" employment and inflation expectations are running above 2% PCE and the Fed decides to do something, like raise ST interest rates, to bring inflation expectations back down to 2% PCE? That's just the way monetary policy is supposed to work.
Larry Summers is an inflation concern troll. And the next time he is right will be the first time.
So what if we get to "too full" employment and inflation expectations are running above 2% PCE and the Fed decides to do something, like raise ST interest rates, to bring inflation expectations back down to 2% PCE? That's just the way monetary policy is supposed to work.