Inflation and Unemployment: Good News Isn’t Bad News

Source: EconLog
by John Phelan

“On November 4, the Bureau of Labor Statistics announced that the U.S. economy added 261,000 jobs in October, beating estimates of 193,000. Isn’t this good news? Not according to Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, who said ‘That tells me we have more work to do to try to cool down the economy and bring demand and supply into balance.’ To most Americans, the idea that good jobs numbers are bad economic news might seem strange. The explanation is that the Federal Reserve uses the Phillips Curve to guide monetary policy.” (11/22/22)