Ann Owen, the Henry Platt Bristol Professor of Economics, was interviewed by American Public Media's Marketplace senior reporter Tracey Samuelson on research released by the Boston Federal Reserve that showed that, “historically, a low unemployment rate can signal trouble for the economy.” The segment, titled Here's the problem with low, low unemployment, was broadcast nationally on Sept. 13.
Owen explained that, “When the unemployment rate is very low, the odds of a recession following that are very high. We don’t know why for sure.” She went on to explain that the Federal Reserve’s reaction to very low unemployment numbers, raising interest rates, might be the answer.
