(1) The Federal Reserve's Next Monetary Policy Meeting Recommendation Brief the Chairman of the Federal Reserve on the current state of the labor market and the current and near future inflation prospects. Your memo will provide advice to the Chairman for the next Federal Open Market Committee (FOMC) meeting. Assuming the Federal Reserve targets a 2 percent inflation rate and a 4 percent natural unemployment rate over a one-year period, discuss the economy's current alignment to those targets. Data on US inflation and unemployment may be obtained from the Bureau of Labor Statistics or the Federal Reserve Bank of St. Louis