Will the Fed’s policy shift start a trend?

IN 2018, WHEN America’s long recovery from the 2007-09 financial crisis pushed the unemployment rate below 4%, the Federal Reserve had a simple message for American workers: do not get used to it. The central bank’s economic projections revealed that its officials believed 4.5% to be the lowest sustainable jobless rate, to which America would need to return to stop inflation surging upwards. If higher interest rates and slower growth were needed to achieve that, so be it.