The fact is, however, that the jury is still out on whether changes in the domestic economy and the global marketplace have left the U.S. less prone to inflation than in the past. But what is clear is that point at which unemployment gives rise to a serious threat of rising inflation appears to be lower than it was in the 1980s and the rate of output growth may be higher, officials said.
Prudence dictates keeping a wary eye on inflationary pressures, but . . .
White House economists said that some assessments of those changes are extreme, such as the view expressed by some analysts that the business cycle is dead. Inc. All Rights Reserved.