THE ECONOMY IS HALF-EMPTY:

Drop in jobless rate boosts inflation concerns (Andrea Hopkins, 2/3/06, Reuters)

A surprise drop in January's jobless rate to a 4-1/2 year low boosted speculation on Friday that America is nearing full employment, with wage rises and more Federal Reserve rate hikes just around the corner.

While January's 4.7 percent unemployment rate is good news for job-seekers, concern that employers will soon bid up wages to attract and hold workers sparked renewed concerns that higher interest rates are needed to keep inflation contained.

One of the interesting things about the reported trade-off between inflation and unemployment is seeing which side of the issue biased reporters emphasize due to political circumstances.