US Economy May Over-Heat Without Higher Rates

[Economy 53,084]

http://mobile.reuters.com/article/idUSKCN0T81TY20151119

 

Economists are warning Federal Reserve to get a move on raising rates ASAP to prevent overheating and imbalances

 

Unemployment is at about 5% so the economy is full to close employment and full productive capacity. This means as the labor market tightens and wages rise, demand and inflation will rise with it and higher rates are needed to keep growth balanced and sustainable without creating bubbles

 

Failure to raise rates once an economy is close to full capacity may result in asset bubbles, high inflation, labor shortages, and distortions in capital allocation

[BoomKack 6,656]

@Economy please don't over-heat girl, drink some water 

[Luc 4,776]

Can't the US just give some of their employment to the EU?  

[Solitaire 902]

tbh the little "economy" sticker by the title should just be @Economy's avi tbh. :iconic:

 

Hope this is handled well, as a young adult with limited income, I don't need prices rising.

 

How do we add emotes? I still haven't figured it out since the update.

[Economy 53,084]

35 minutes ago, Solitaire said:

tbh the little "economy" sticker by the title should just be @Economy's avi tbh. :iconic:

 

Hope this is handled well, as a young adult with limited income, I don't need prices rising.

 

How do we add emotes? I still haven't figured it out since the update.

Id be so honoured hahaha