Federal Reserve Chair Janet Yellen and her international counterparts are suffering from a case of what psychologists call confirmation bias: They keep insisting inflation will accelerate even as it continues to ebb.
More than two-thirds of the gauges on Janet Yellen’s labor-market dashboard are still showing worse readings than before the recession, reinforcing her belief that the economy will need “extraordinary support” from the Federal Reserve for “some time to come.”
Federal Reserve Chair Janet Yellen says she doesn’t disagree with her predecessor on the substance of monetary policy. She does differ in style, which may prove important if the market reaction to her debut press conference is indicative.
Janet Yellen says Federal Reserve policy makers need to look at a broader range of data to get a good handle on the job market. She hasn’t highlighted one labor indicator that economists say is sounding inflation alarms: short-term unemployment.
AFL-CIO President Richard Trumka voiced concern over the Federal Reserve’s moves to scale back its stimulus and said he thought new Chair Janet Yellen would reverse course if the economy is hurt too much.
Paul Krugman, a Nobel-prize winning economist who has used his New York Times column to champion greater government action to stimulate growth and create jobs, is leaving Princeton University for the City University of New York.