Updated FOMC Dot Plot:
https://www.bloomberg.com/graphics/fomc-dot-plot/
Decline in mobile phone services affects US inflation:
https://www.bloomberg.com/news/articles/2017-06-15/what-s-good-for-consumers-is-creating-noise-for-the-fed
Related:
https://www.nytimes.com/2017/06/14/upshot/janet-yellen-and-the-case-of-the-missing-inflation.html
https://www.nytimes.com/2017/06/14/us/politics/federal-reserve-meeting-interest-rates.htmlhttps://www.nytimes.com/2017/06/14/upshot/janet-yellen-and-the-case-of-the-missing-inflation.html
Monetary Policy Normalization
Interesting speech from Jerome H. Powell – Member, Board of Governors of the Federal Reserve System
Powell notes:
“My baseline expectation is that the economy will continue on a path of growth of about 2 percent, strong job creation and tightening labor markets, and inflation moving up toward our 2 percent target. I expect that unemployment will decline a bit further and remain at low levels for some time, which could draw more workers into the workforce, put upward pressure on wages, or cause businesses to invest more as labor costs rise, all of which I would view as desirable outcomes. Risks to the forecast now seem more balanced than they have been for some time. In particular, the global picture has brightened as growth and inflation have broadly moved up for the first time in several years. Here at home, risks seem both moderate and balanced, including the downside risk of lower inflation and the upside risk of labor market overheating.”
“My baseline expectation is that the economy will continue on a path of growth of about 2 percent, strong job creation and tightening labor markets, and inflation moving up toward our 2 percent target. I expect that unemployment will decline a bit further and remain at low levels for some time, which could draw more workers into the workforce, put upward pressure on wages, or cause businesses to invest more as labor costs rise, all of which I would view as desirable outcomes. Risks to the forecast now seem more balanced than they have been for some time. In particular, the global picture has brightened as growth and inflation have broadly moved up for the first time in several years. Here at home, risks seem both moderate and balanced, including the downside risk of lower inflation and the upside risk of labor market overheating.”