Last week's economic news seemed to come gift-wrapped for the White House: unemployment fell steeply and unexpectedly to 5.1% in August, the lowest it's been since 1989. Yet with more people working and paychecks fattening, the alarm bells in the inflation firehouse known as the Federal Reserve Bank must be going off. Some economists believe that inflation is inevitable when the unemployment rate drops below 6%, because wages rise as the labor market tightens. Average hourly earnings in August rose by 0.5%, bringing wage increases over the past year to 3.6%. Throw in the torrid 4.8% gdp growth...

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