The problem of doing too well
The Wall Street Journal commented that the US Federal Reserve is concerned with the US unemployment rate being too low. Only twice in the past half-century has unemployment fallen to its current rate of 3.8% - for a few years in the late 1960s and for one month in 2000. The ’60s episode helped spur years of soaring inflation that took a decade for policymakers to corral. The latter coincided with a technology bubble that, when it burst, caused the 2001 recession. The WSJ expects that on Wednesday the Fed will raise short-term interest rates, trying to put some brakes on the economy.