Lower unemployment may not create inflation, Bullard says
The relationship between employment and prices has changed, warns US policymaker
The recent acceleration of job creation in the US may fail to create higher inflation, James Bullard, the president of the Federal Reserve Bank of St Louis, said in a speech today (February 6).
“I caution against interpreting good news from labour markets as translating directly into higher inflation,” Bullard said. “The empirical relationship between these variables has broken down in recent years and may be close to zero.”
The US economy created 200,000 new jobs in January and the
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