IMF Strikes Out in Projecting Unemployment as Badly As the Fed

Those of us pushing the Federal Reserve Board to hold off on raising interest rates have pointed out that the members of the Fed's Open Market Committee, like other economists, have repeatedly over-estimated the non-accelerating inflation rate of unemployment (NAIRU), the unemployment rate at which inflation would start spiraling upward. In 2014, they had put it at 5.4 percent. Today the unemployment rate stands at 4.1 percent, with no evidence of acceleration in the inflation rate.

If the Fe...