Mish: Not long ago, economists thought that 5% unemployment was about as low as it could get without boosting inflation.
Powell: Inflation has increased notably and will likely remain elevated in coming months before moderating.
Inflation is being temporarily boosted by base effects, as the sharp pandemic-related price declines from last spring drop out of the 12-month calculation.
Powell: To avoid sustained periods of unusually low or high inflation, the Federal Open Market Committee's monetary policy framework seeks longer-term inflation expectations that are well anchored at 2 percent, the Committee's longer-run inflation objective.
Measures of longer-term inflation expectations have moved up from their pandemic lows and are in a range that is broadly consistent with the FOMC's longer-run inflation goal.
Inflation expectations hit the 5% level by averages and by single-point predictions, at 4.8% and 5.48% respectively.
Tax on the Poor Inflation is best thought of as a tax on the poor and anyone who does not hold assets.
It's becoming increasingly difficult to discern fact from fiction, and unfortunately the media has a strong bias. They spin stories to make conservatives look bad and will go to great lengths to avoid reporting on the good that comes from conservative policies. There are a few shining lights in the media landscape-brave conservative outlets that report the truth and offer a different perspective. We must support conservative outlets like this one and ensure that our voices are heard.
Thursday, July 15, 2021
Economic Nonsense is Extremely Well Anchored in Fantasyland, and Not Just at the Fed
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment