With steady growth, low unemployment and tame inflation, the U.S. is experiencing a "Goldilocks" economy: Not too hot. So says a top Federal Reserve official, who on Friday suggested that the unemployment rate could fall further to 3.5 percent with inflation modestly overshooting the Fed's target for a time without raising concerns. "I feel this is pretty much a Goldilocks economy," Williams said, noting the strong labor market and moderate gains in wages and inflation. At its meeting on Wednesday, the Fed left its key policy rate unchanged at a still-low level of 1.5 to 1.75 percent. "I am personally comfortable with the fact that inflation may overshoot that 2 percent (Fed target) for a while," Williams said.

Source: ABC News May 04, 2018 21:02 UTC