This is a four-letter word we've alluded to before and, in our humble opinion, at least one reason the Fed is behind the curve.
Jobs. Yes, they're out there and this is not the first sign. Again, if Fed Chair Yellen, as she recently did, questions the accuracy of the Fed's models to adequately track prices is correct why would jobs be any better. The truth is they ain't.
The truth is the Fed is trying to muddle its way through a situation they muddled up to begin with. From Japan to the EU to the US as more and more of these economic soothsayers keep worrying about more deflation the less likely that's what's in store. As even Keynes pointed out: nine times out of 10 the most feared never happens.
http://www.businessweek.com/articles/2014-04-24/labor-shortages-pop-up-in-many-u-dot-s-dot-cities
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