When the Labor Department announced the U.S. unemployment figures for April, the news was so good it might be bad. The jobless rate fell to 5.4%, down from 5.6% in March, and the lowest level since June 1974. That was encouraging to those who found work, but the news raised fears of renewed inflation. Reason: pressure on the job market could lead to a widespread rise in wages that, in turn, could boost prices.
Restraining consumer prices, which rose at a 6.4% annual rate in March, will be no easy task for Federal Reserve Chairman Alan Greenspan. To cool the economy,...
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