Alan Krueger, a labor market expert who was President Barack Obama’s top economic adviser, thinks that most of the slack is out of the U.S. labor market and the Federal Reserve should cautiously keep raising interest rates.
In an interview with MarketWatch, Krueger also said the recent pick-up in the labor force participation rate won’t last. Don’t look for a flood of long-term unemployed workers returning to the workplace from off the sidelines, he said.
