Faculty News
Dean Peter Henry comments on Fed Chairman Janet Yellen's and European Central Bank President Mario Draghi's speeches at the Federal Reserve Jackson Hole Conference
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Excerpt from Bloomberg -- "The point is, it's not so simple to understand whether the economy is at full employment or not. That's the key issue. If the economy is at full employment, then the Fed has to do what it needs to begin to think about raising interest rates to keep prices from rising, inflation from rising. But we don't know. There's a mystery right now. And the key thing about [Janet Yellen's] speech is she said, very clearly, one piece of information is not going to solve this mystery. Looking at wage inflation alone is not going to tell us whether we should raise interest rates."
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Additional coverage appeared on Bloomberg Businessweek.
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Additional coverage appeared on Bloomberg Businessweek.