Interesting speech from the Vice Chairman of the Federal
Reserve: U.S. Inflation Developments
Fischer states –
“Can the Committee
be "reasonably confident that inflation will move back to its 2 percent
objective over the medium term"? As I have discussed, given the apparent
stability of inflation expectations, there is good reason to believe that
inflation will move higher as the forces holding down inflation dissipate
further. While some effects of the rise in the dollar may be spread over time,
some of the effects on inflation are likely already starting to fade. The same
is true for last year's sharp fall in oil prices, though the further declines
we have seen this summer have yet to fully show through to the consumer level.
And slack in the labor market has continued to diminish, so the downward
pressure on inflation from that channel should be diminishing as well.”
Related:
http://vivekjayakumar.blogspot.com/2015/08/measured-inflation-and-actual-cost-of.html