The Fed should let the economy run some more

Michael Madowitz writes that a decade of slow wage growth means that there is considerable scope for wages to keep rising without inflation.

We’re down to two jobs reports and two Federal Reserve meetings left this year, and the economic climate is beginning to feel a lot like the end of last year — with a renewed push for higher rates from some members of the Federal Open Market Committee, even as the data continue to show a strengthening labor market with no signs of inflation.

So, what’s going on? We’re in the middle of a pretty fundamental debate about what monetary policy is supposed to do.

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