Fred Nairu 4.42% compared to the Unemployment rate of 3.4%, can be an interesting graphical comparison. The non-accelerating inflation rate of unemployment according to the Fed was supposed to be higher than +0.8%. Could this imply higher unemployment in future quarters?
OUR LINEAR REGRESSION PHILLIPS CURVE MODEL HINTS AT A HIGHER UNEMPLOYMENT RATE
linear regression chart of unemployment rate time series, cpi inflation(BLS data) linear regression crossing at 4.9% unemployment rate= 3.2% CPI Inflation
Non-Cyclical Unemployment Rate of 4.42%, compared to the U6 Unemployment Rate of 6.6%. Graph interpretation indicates that the U6 Unemployment rate hasn’t converged to the long-term unemployment rate and that there’s slack in the economy. Will this bring inflation higher again in future?