2.9%! (Good news for Yellen)
The recent wage report presents very good news for Janet Yellen:
It might have been slightly impacted by the hurricanes, but the loss of 100,000 low wage hospitality jobs in a 150,000,000 strong labor force isn’t very significant for aggregate hourly wages. And that’s not just my view, the markets feel the same way:
Yellen is on a glide path to near perfection, as she will probably end her term achieving the Fed’s dual mandate better than any other chair in history.
So let’s replace her with someone lacking qualifications and a history of bad logic and bad judgement!
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6. October 2017 at 08:30
Plus she’s just a diversity hire. Now that Trump has slain the PC dragon, we can stop giving ladies important jobs.
But seriously, I hope someone talks Trump into keeping her (not likely but that’s my hope). He does listen to a few people.
6. October 2017 at 09:01
I think one of the reports said that the strong growth in earnings was due to overtime pay for utility workers.
6. October 2017 at 15:21
It is difficult for me to understand ironies of English language.
6. October 2017 at 16:59
Well…this has also been the slowest recovery from a recession in US history.
9. October 2017 at 09:54
Hi Scott,
Can you please clarify: Are you saying that Yellen’s near-perfect hitting of the Fed’s dual mandate shows how messed up the dual mandate is, or are you genuinely impressed with the economic performance during Yellen’s tenure?
9. October 2017 at 10:01
Bob, Neither. Monetary policy has been increasingly good, but of course lots of other (supply-side) policies need improvement.
It’s not the Fed’s job to produce a good economic performance; it’s their job to produce stable nominal growth. You can have that with zero RGDP growth.
29. January 2018 at 13:48
[…] Sumner, an economist at George Mason University, wrote in an October appraisal that Ms. Yellen’s performance was “near perfection.” He added that, at the end of her tenure, Ms. Yellen will likely have achieved the Fed’s dual […]
29. January 2018 at 14:12
[…] Sumner, an economist at George Mason University, wrote in an October appraisal that Ms. Yellen’s performance was “near perfection.” He added that, at the end of her tenure, Ms. Yellen will likely have achieved the Fed’s dual […]
29. January 2018 at 14:46
[…] Sumner, an economist at George Mason University, wrote in an October appraisal that Ms. Yellen’s performance was “near perfection.” He added that, at the end of her tenure, Ms. Yellen will likely have achieved the Fed’s dual […]
29. January 2018 at 15:07
[…] Sumner, an economist at George Mason University, wrote in an October appraisal that Ms. Yellen’s performance was “near perfection.” He added that, at the end of her tenure, Ms. Yellen will likely have achieved the Fed’s dual […]
29. January 2018 at 16:01
[…] Sumner, an economist at George Mason University, wrote in an October appraisal that Ms. Yellen’s performance was “near perfection.” He added that, at the end of her tenure, Ms. Yellen will likely have achieved the Fed’s dual […]
31. January 2018 at 12:42
[…] will exit the Federal Reserve on Saturday. She leaves behind a legacy of “near perfection.” She has overseen the biggest drop in unemployment of any Fed chair in modern history and the stock […]