Yellen repeated her view that the Fed will likely hike interest rates later this year if the U.S. economy expands as expected, and cited improvement in the labor market.
This is the real story here. Employment has not recovered. The workforce participation rate is absurdly low. Yet the Fed is going to pump the brakes on the economy out a misguided fear of inflation, and the fear that, god forbid, employment will rise and workers might actually have some bargaining power to demand higher wages.
This is the real story here. Employment has not recovered. The workforce participation rate is absurdly low. Yet the Fed is going to pump the brakes on the economy out a misguided fear of inflation, and the fear that, god forbid, employment will rise and workers might actually have some bargaining power to demand higher wages.