The Fed Is Using the Word Transitory to Describe Inflation

The unemployment rate fell to three point nine % in december. The last time you saw a two point decline in the us. Unemployment rate to a level below four % had only happened once before, and that was during the kurean war. So this was a dramatic tightening of the labor market. And so that is really what helped move them away from this idea that inflation was transitory. That's all happening during a period when the unemployment rate is below the level they think is consistent with stable prices.