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Rate hit 3.7 percent in September. That’s well below estimates of where unemployment can settle without causing rapid price growth. Economic theory holds that as unemployed workers become scarce, employers are forced to raise wages to compete for employees. As a result, workers have more to spend and prices rise Some prominent economists, including several who served in the Obama administration, seem to agree with elements of Trump’s argument. They say the Fed should move slowly because the economy is not as good as it seems, especially for disadvantaged groups. The Fed raises rates to keep the economy from overheating. But what if it’s not running a hot.
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