The authors discuss three impacts from running a “hot” economy: labor market inclusiveness, potential financial market instability and a greater risk of excessive inflation. • Since time is short, I will focus most of my comments on the benefits of labor market inclusiveness. • The Federal Reserve’s new framework states that “full employment is a broad-based and inclusive goal.” • A challenge for policymakers is to try and determine when that goal has been achieved. • One interpretation is that it is when all groups have similar labor market outcomes according to various metrics. • For example, those metrics could ... (full story)