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There are nearly 10 million job openings in the U.S. Right now. Almost everybody who wants a job can have one. I said that almost everybody can have a job. And thats by design of the Federal Reserve. The Fed has to monitor the labor market. Fed has a dual mandate. Dual mandate. And it focuses both on price stability and also maximum sustainable employment. Maximum sustainable employment is the highest level of employment we can have without generating harmful inflation. The problem is that maximum employment target is much less obvious than the 2% inflation rate target. After all, the Fed itself says the max level of employment is not directly measurable. Its more sort of amorphous thing. There isnt a number and there isnt one particular measure either. So then what does this mean? Labor market conditions are consistent with maximum employment. Heres why every American who wants a job cant have a job and what maximum employment really means. So the Fed aims for 2% inflation year
