The text states that the Committee “expects inflation to rise gradually toward 2% over the medium term as the labor market improves further….” Why would the FOMC expect inflation to rise because of improvements in the labor market?

Because a better labor market means that more people are employed and earning a salary. This increase in the number of people employed will drive consumption, which in turn, will push prices of goods and services because supply is likely to fall short of demand in the short-term.

This in turn will cause a moderate rise in inflation, just like the FOMC expects.

legislative branch:

one of the three branches of government divided between the senate and the house of representatives.

- creates or makes laws

- power to override a veto

executive branch:

one of the three branches of government, headed by the president.

- enforces or carries out laws

- power to veto a bill sent to it by congress

judicial branch:

one of the three branches of government, headed by the chief justice of the supreme court.

- interprets laws

- power to declare laws or actions by the government unconstitutional

there has only been 12 presidents. the 12th president is/was moon jae-in