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US may need 7.5% unemployment to curb inflation: Research
The United States unemployment rate may need to reach as high as 7.5 per cent, double its current level, to end the country's outbreak of high inflation, according to new estimates from a team of researchers including two staff economists from the International Monetary Fund (IMF). That would entail job losses of perhaps 6 million people, but the research found that only under "quite optimistic assumptions" about the behavior of the US job market and inflation would the US Federal Reserve be able to tame current price pressures with a smaller blow to employment.As of June, Fed officials at the median projected ... (full story)