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The Fed is wrong: Lower inflation is unlikely without raising unemployment
In a lengthy FEDS Note, “What does the Beveridge curve tell us about the likelihood of a soft landing?,” published July 29, Governor Chris Waller and Fed associate director Andrew Figura challenge the conclusions of our PIIE Policy Brief, “Bad news for the Fed from the Beveridge space.” We looked at their note with interest, in the hope of being educated on a more optimistic view of the American economy’s soft landing prospect. Unfortunately, our judgment is that it contains misleading conclusions, errors, and factual mistakes. We find it entirely unconvincing as support for the “soft landing” ... (full story)