CAMBRIDGE: Until recently America's booming New Economy reigned supreme: no inflation to speak of, stocks at all time highs, four years at over 4% growth, full employment, and budget surpluses. To that vision even cynics surrendered. Now everything looks different. Signs of inflation in product and labor markets loom; the only question now is whether the economy will slow quickly by itself or whether the Federal Reserve Board must beat it into the ground by quickly raising interest rates.
CAMBRIDGE: Until recently America's booming New Economy reigned supreme: no inflation to speak of, stocks at all time highs, four years at over 4% growth, full employment, and budget surpluses. To that vision even cynics surrendered. Now everything looks different. Signs of inflation in product and labor markets loom; the only question now is whether the economy will slow quickly by itself or whether the Federal Reserve Board must beat it into the ground by quickly raising interest rates.