The Wall Street Journal today reports:
“Employers added 209,000 jobs last month. The unemployment rate fell to 3.6%.”
By this criterion alone, a 3.6% employment rate, it is possible to state with certainty what the legal inflation rate target of the Federal Reserve System.
By the 1978 Full Employment and Balanced Growth Act, if the unemployment rate is below 4% then the inflation target (from 1988 onwards) is 0%.
As I have noted before, this statutory US law that states a 0% target for the Fed also states in the same statute that this inflation rate target cannot be changed by the anyone except the US President of or the US Congress.
Max Gillman 