Federal Reserve Chairman Jerome Powell said the relationship between unemployment and inflation has collapsed. “The relationship between the slack in the economy or unemployment and inflation was a strong one fifty years ago ... and has gone away,” Powell said on Thursday during his testimony in front of the Senate Banking Committee. “At least twenty years ago, that period was over and the relationship between unemployment and inflation became weak. And it’s become weaker and weaker and weaker,” he said. “In additional to that, we are learning that the neutral interest rate is lower than we had thought and ... the ... (full story)