The Fed's Unexpected Partner in Tackling Inflation

The recent spike in legal immigration in the United States has helped meet the surging demand for workers in the wake of the pandemic, potentially aiding the Federal Reserve's efforts to cool inflation without causing a significant increase in unemployment. The influx of foreign-born workers has contributed to a loosening labor market, allowing for increased participation and filling job vacancies. However, the long-term impact on inflation and wages remains uncertain, and the debate over immigration policies continues to be a contentious issue.