Should the Fed preempt a potentially overheating job market?

July payrolls released this morning grew by 209,000, enough to stop cold a decline in mortgage and other long-term rates and roughly double the monthly gain, which would stabilize the unemployment rate at today’s 4.3 percent — either stop hiring, or add more people to the work force, or the rate of unemployment will continue to fall, presumably below zero, and with who-knows-what consequences for wages and inflation …

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