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Unpopular view: The Fed is still dovish about full employment
Working people don’t have quite the same kind of friend on the Federal Reserve as they did when Janet Yellen was the chairwoman. But newly installed Chairman Jerome Powell has maintained the central bank’s bias toward full employment. That could keep the party going longer, and it could allow workers to capture a larger share of income, even if it means profit margins get squeezed. Yes, the Fed raised interest rates again this week, and signaled that it intends to push its overnight lending rate even higher over the next two years. Markets, analysts and headline writers considered this to be another hawkish move ... (full story)