Before delving into this column’s details, I feel obligated to state that I have a very deep admiration for Chairperson Yellen. She is a very accomplished economist and perhaps the most qualified person to ever lead the Federal Reserve. That being said, I believe the data shows she is misreading the strength of the economy. And if that’s correct, then her expressed desire to raise rates would be a mistake.
Let’s begin with her analysis of the U.S. labor market:
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