News Briefs

In a Wall Street Journal op-ed, former chair of the Council of Economic Advisers Martin Feldstein argues that the Federal Reserve will be unable to manage the labor market distortions caused by automation. Feldstein contends that labor market shocks will be caused by supply-side disruptions rather than demand-side disruptions, and the normal response of easy-money policies will not help the economy return to full employment. WSJ

Justin Lahart of the Wall Street Journal reports that the Fed’s expected rate hike this week will likely push the U.S. yield curve closer to an inversion. Lahart writes that Fed officials may also raise their forecast of total rate hikes in 2018 from three to four, which could signal that the economy is running hotter than expected. WSJ