Is Yellen Playing with Fire by Not Raising Rates?

The Federal Reserve refuses to raise interest rates despite clear signals that the labor market may be overheating. Thursday's jobless claims report was so low that it lit up Twitter.

Yet just days ago, Janet Yellen, chairwoman of the Federal Reserve, testified before the U.S. Congress that she remains worried about the labor market's slack. By waiting until signs of economic strength are overwhelming before raising rates, the Fed is making the exact same mistake that it made in 2003.