I just found this article from MarketWatch.com that discusses how jobless claims have fallen to a 42-year low based on estimates from new applications for unemployment benefits. As we know in economics, unemployment and inflation are a trade-off, but as of late, the inflation rate has been exceptionally low. It doesn't seem right to question a low unemployment rate, but, as we have learned in class, the Fed is supposed to ensure stable economic growth, and this situation almost seems too good to be true.
So, do you think that this is stable growth? How do you think the Fed should react? How should we feel about this looking forward?