
U.S. unemployment looks to be headed down to levels last seen when The Monkees ruled the pop charts and Ford Mustangs roamed the roads. And that’s got some economists and investors worried. Yes, it was the Swinging ’60s -- 1966 to be precise. Joblessness, which now stands at 4.1 percent, fell as low as 3.6 percent. That’s the same rate that Federal Reserve policy makers see the U.S. hitting at the end of next year.
Main Idea: The Federal Reserve’s forecast of very low unemployment is raising concerns that U.S. inflation could pick up again, much like it did in the late 1960s.
Key Points:
Lower unemployment can push wages and prices up, which may mean the Federal Reserve raises rates and households face higher borrowing costs and faster inflation.
Strong job markets can help more workers find jobs and raise pay, which supports spending in many communities.
Rate how each entity in this article affected the American people.
Central policy institution whose projected unemployment and inflation outlook is the core reference point for the article.
Briefly mentioned as a historical comparison point for the 1960s economy.
Briefly mentioned as a 1960s pop-culture benchmark used for comparison.
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