An Inclusive Economy: Is Progress at Risk?

It's been two years since the Federal Reserve debuted a review of its monetary policy framework at the Jackson Hole symposium with an expressed goal of reaching maximum employment and an accompanying willingness to let inflation run temporary above trend if it would help maintain a strong labor force. The Federal Reserve has also made a commitment to address the inequities that have long persisted in the US labor market and economy.

However, high inflation in the wake of the Covid-19 crisis has put this theory to the test. This panel will explore the significant benefits of a healthy labor market for the US economy, the progress that has been made towards achieving full employment in the last two years, and the challenges ahead as the macroeconomic backdrop becomes less accommodative. The key question is, can we have an inclusive economy that benefits all and still avoid a recession?