Mar 29, 2017
the economy is finally back to normal
Congratulations, America. The economy is finally back to normal.
That's what John Williams, the head of the Federal Reserve Bank of San Francisco, declared Wednesday.
"The data have spoken, and the message is clear: We've largely attained the hard-sought recovery we've been after for the past nine years," Williams told the Forecasters Club, a gathering of economists, in New York. He dubbed it a "Goldilocks economy."
Unemployment peaked at 10% after the Great Recession. Today it's just 4.7%, a level Williams said constitutes "full employment" because there will always be some job seekers, even in a healthy economy. Inflation is also "nearing" the Fed's goal of 2%, he said.
The Fed raised interest rates this month for only the third time since the financial crisis. The central bank is expected to raise rates two more times this year, but Williams hinted again that three more hikes might be appropriate in 2017.