And contrary to the whines of Sen. Elizabeth Warren, who has once again browbeaten Fed Chairman Jerome Powell for trying to crack down on inflation, the employment half of the Fed's dual mandate remains not just upheld, but perhaps even prioritized.Employment rose by more than half a million jobs in April, blowing past the expectation of 185,000 jobs. While the Bureau of Labor Statistics revised March employment gains downwards, April's unemployment rate held at 3.4%, a 54-year low.
Although the fastest rate hike campaign in Fed history has brought the nominal federal funds rate to the 5% to 5.25% range , the Fed is still only fulfilling one-half of its dual mandate. On top of inflation itself, which remains nearly three times the Fed's maximum target of 2% annually, the job market is way too hot for the Fed, which doggedly adheres to the Phillips Curve in its modeling.
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