Re: Lower unemployment rate= higher inflation
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I can tell I'm going to get pounded on this one, but for people who know what I'm talking about and know about economics, how many of you agree with the statment that a low unemployment rate = higher inflation, and thus having unemployment at about 3-5% is actually good for the economy.
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Correct me if I'm wrong because I'm no economic major but isn't 3 percent unemployment pretty much full employment? ie. at any given time 3 percent of the ppl. are going to be between jobs.
As far as inflation goes I think we may be heading into a an area of Higher inflation. Even though energy cost have come down alittle they are still a lot higher then last year. I will just be a matter of time before these higher energy costs are going to be pushed down to the consumer. With this being said I don't see the Fed slowing down rising rates anytime soon.
I'm not sure if inflation has anything to do with a super low unemployment rate unless the economy is growing at a incredible rate.
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