Economics Talk. We're facing MORE THAN full employment yet inflation isn't raging?

via Reuters.

U.S. job growth accelerated in May and the unemployment rate dropped to an 18-year low of 3.8 percent, pointing to rapidly tightening labor market conditions, which could stir concerns about inflation.

The closely watched employment report released by the Labor Department on Friday also showed wages rising solidly, cementing expectations that the Federal Reserve will raise interest rates this month and boosting the probability of two more hikes later in the year. It renewed fears about the economy overheating.

“The strength of the labor market supports our forecast for the Fed to raise rates three more times this year,” said Ryan Sweet, a senior economist at Moody’s Analytics in West Chester, Pennsylvania. “The Fed is going to get antsy that the labor market will blow too far past full employment.”

Story here. 

I would love to audit a modern economics course, cause what we've seen over the last decade plus has defied every economic theory I've ever heard of.

We're well south of 5 percent unemployment and we don't see crazy inflation?

We're well south of 5 percent unemployment and we don't see wage increases that are boggling the mind?

We're well south of 5 percent unemployment and the real price increases we're seeing lies ONLY in gas and medical costs (well you could throw in college expenses but those have been fraudulent since the late 70's)?

Then we have some analyst at Moody's saying the Fed is going to get antsy?

THEY ALREADY SHOULD BE ANTSY!!!!!

If this was a normal economy acting on real economic factors then the Fed would be so far behind the power curve that it's laughable.

Name a time in our economic history when every factor I pointed out didn't point to double digit interest rates!

I can't explain it because my knowledge is obviously outdated but something is definitely off with this economy!