Too much or too little? Asked by German network Deutsche Welle about the Federal Reserve’s 0.75 percentage point interest rate increase July 27, Chief Economist Gerald Cohen called it just right, given that a hot job market is now accompanied by high inflation. “Their greatest concern, and this is the lesson learned from the 1970s and 1980s in the U.S., is that it becomes entrenched, and so people start to behave as if inflation at very high rates is going to continue,” Cohen said.