What will it take to bring inflation down to the percent rate the Federal Reserve says it continues to target? The current surveys of public opinion imply that it will not take much. The Federal Reserve Bank of New York's survey found that only 40 percent or so of the public thinks that unemployment will be higher a year from now while the media expectation for inflation came down to 6.2 percent over the next year and 3.2 percent over the next three years. A survey by Rasmussen found that only 35 percent of the public expected unemployment to rise over the next year. Let's be perfectly clear about this. Unless the Federal Reserve fails utterly in its attempt to bring down the rate of inflation over the next year, the unemployment rate will absolutely be higher than the 3.5 percent rate registered in July. Even if the Fed were not tightening monetary conditions, it would be a very good bet that the unemployment rate would rise for the simple fact that it is at a historically normal low rate. When unemployment is this low, it tends to go higher either because more people are drawn into the labor market—which… Read full this story
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Breitbart Business Digest: How Much Does Unemployment Need To Rise to Tame Inflation? have 315 words, post on www.breitbart.com at August 10, 2022. This is cached page on xBlogs. If you want remove this page, please contact us.