Yada, yada, yada. Stubborn inflation? Will they or will they not? Pundits have been falling all over themselves for a long time making hay out of these decadent questions leading nowhere.
Just remember that the 2% inflation target is there only to avoid the dreaded deflation whereby the prices drop uncontrollably, producers cannot recover their costs and a wave of bankruptcies ensues. Thus, the inflation target could be 1% or 3% just as well.
There is a lot more going on than you describe in this article. Time to take a leap out of the ivory tower! Of course Powell and the Fomc voters are backtracking. The political and fiscal backdrop changed. As Keynes once said , and I am paraphrasing, the facts changed so I am changing my outlook, and you sir?
Not able to view your entire analysis!
The Fed should consider easing their policy.
Here is a comprehensive overview why:
https://open.substack.com/pub/arkominaresearch/p/why-fed-could-create-depression?r=1r1n6n&utm_campaign=post&utm_medium=web
Yada, yada, yada. Stubborn inflation? Will they or will they not? Pundits have been falling all over themselves for a long time making hay out of these decadent questions leading nowhere.
Just remember that the 2% inflation target is there only to avoid the dreaded deflation whereby the prices drop uncontrollably, producers cannot recover their costs and a wave of bankruptcies ensues. Thus, the inflation target could be 1% or 3% just as well.
There is a lot more going on than you describe in this article. Time to take a leap out of the ivory tower! Of course Powell and the Fomc voters are backtracking. The political and fiscal backdrop changed. As Keynes once said , and I am paraphrasing, the facts changed so I am changing my outlook, and you sir?