Attention Economy


Saturday, May 20, 2023

The Two-Percent Inflation Target

Wall Street Increasingly Doubts Fed Can Meet 2% Inflation Target
https://www.bloomberg.com/news/articles/2023-05-20/wall-street-increasingly-doubts-fed-can-meet-2-inflation-target
 
I stated in my piece for The Hill on April 19, 2022:
https://thehill.com/opinion/finance/3272668-is-4-percent-inflation-the-new-normal/
Given the Fed’s belated actions and the limitations of its policy tools, financial markets and the citizenry may have to consider the possibility that inflation will remain elevated (above the 2 percent target) for an extended period. The new normal for inflation may, in fact, be between 3-4 percent.


Related:
Why Is Inflation So Stubborn? Cars Are Part of the Answer.