Officials Debate for Unemployment

While the economy inches closer to what is deemed full employment, Federal Reserve officials are debating on how much unemployment can be allowed to decrease before the risks of "runaway inflation" and major recession becomes a reality. The argument of one side of officials is that unemployment falling below its 5% level would allow more potential workers outside of the labor force to re-enter, while the other side says that letting the unemployment rate decrease any more will  likely result in an increase in interest rates by the Feds to combat the expected inflation which the Feds struggled with in the 1960s and 70s.  Janet Yellen, Fed Chairwoman, noted that the Fed may be wrong in its estimate of the unemployment rate of 4.8%, as she believes the actual rate to be even lower, which would be beneficial  in a number of factors including, returning inflation go its ideal 2% goal and creating faster wage growth.

http://www.wsj.com/articles/fed-hits-crossroads-on-inflation-policy-1474228920