Capacity utilization rates and unemployment rates: Are they complements or substitues in warning about future inflation?

This research examines capacity utilization as a measure of economic slack in the US economy. There is indeed reason for the Federal Reserve to take note of changes in capacity utilization when trying to determine its policy position with regard to inflation. Clearly, the high capacity measure developed offers distinct information about the inflation process. Another issue raises the question as to whether the capacity utilization and unemployment rates are complements or substitutes in the inflation equation. If the capacity utilization rate is indeed a useful measure of inflationary pressure, is there a threshold level of the capacity utilization rate above which policymakers should become particularly concerned about the potential of accelerating inflation?