Janet Yellen said the other day that she’s willing to let the US economy run “hot” — meaning too fast and maybe inflationary.
I’m all for that. But that’s like a .150 hitter in baseball saying he’s going to let himself hit .300. Let him get to .200 before he starts worrying about bigger plans.
Since the Great Recession of 2007-08, the US economy has been running too cold, and the Federal Reserve chief even said economists were puzzled by this.
Meanwhile, the US economy looks like it grew at an annual rate of under 2 percent in the third quarter. That means growth for the full year — no matter how good the last three months are — will be awful.
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