However, economist Paul Krugman argues inflation created lasting psychological and political damage.
Instead, inflation, which now sits around 3.2% as of July, has had lasting psychological and political damage, Krugman argues.
But with a strong labor market and unemployment levels remaining at around 3.8%, there's little argument that the economy is undergoing what Krugman calls "remarkable progress."
According to the personal consumption expenditure deflator, the Fed's preferred inflation indicator, inflation fell below 3% for the last three months, well below last year's rate.
The drastically high levels of unemployment many economists predicted two years ago are nowhere to be seen, as unemployment levels matched pre-Covid levels within three years — in comparison to over a decade following the 2008 recession.
Persons:
Paul Krugman, Krugman, Goldman Sachs, there's, Biden, It's, Joe Biden's
Organizations:
Service, The New York Times, Quinnipiac University, Democrats, Trump, US, Biden
Locations:
Wall, Silicon, Russian, Ukraine
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