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No Surprise: Wall Street Wants to Raise the Target Inflation Rate above 2 Percent
No Surprise: Wall Street Wants to Raise the Target Inflation Rate above 2 Percent Price inflation in the United States remains stubbornly high, with October’s print at 7.7 percent. The Fed’s preferred measure, so-called core inflation is only two-tenths of a percent below 40-year highs, at 6.3 percent. Yet, it was just last year that […]
Strait Outta Hormuz
Strait Outta Hormuz The Strait of Hormuz these days seems to be what the streets of Compton used to be in the 90s. Yesterday, Iran’s Revolutionary Guard said it has seized a “foreign vessel” for smuggling fuel. And this morning, news came in that the US has shot down an Iranian drone in the Strait of […]
Rethinking the Fed’s 2% Inflation Target: Spotlight On an Absurd Debate
Rethinking the Fed’s 2% Inflation Target: Spotlight On an Absurd Debate Is the Fed’s 2% inflation target too high or too low? That’s the big debate now amongst central bankers. The Wall Street Journal reports Policy Makers Rethink a 2% Inflation Target. From Ottawa to Oslo, policy makers have been considering whether that level of […]
Why Core Inflation is Rising & What it Means for Fed Rate Hikes
Why Core Inflation is Rising & What it Means for Fed Rate Hikes Yellen was right to brush off “transitory” factors of “low” inflation. Consumer prices, as measured by CPI for October, rose 2.0% year-over-year. A month ago, CPI increased 2.2%. The Fed’s inflation target is 2%, but it doesn’t use CPI, or even “Core […]
Yesterday’s “Watershed” Central Bank Announcement Which Everybody Missed
Yesterday’s “Watershed” Central Bank Announcement Which Everybody Missed In what may have been a watershed moment in monetary policy – which awkwardly was missed by almost everyone as a result of the concurrent launch of the latest North Korean ballistic missile which immediately drowned out all other newsflow – late on Thursday, the Bank of […]
“Bad Options” Regarding 2% Inflation Targets (And Other Silly Notions)
“Bad Options” Regarding 2% Inflation Targets (And Other Silly Notions) The Wall Street Journal and Bloomberg both posted ridiculous articles regarding today regarding inflation. The former was on “bad options” the latter on “inflation expectations”. Let’s take a look at both articles because both represent widely believed nonsense. In Bad Options for Addressing Too-Low Inflation, Wall […]
Is an Inflation Comeback in the Works?
Is an Inflation Comeback in the Works? Exterminating Angel LOVINGSTON, VIRGINIA – Amid all the sound and fury of the Trump news cycle, hardly anyone noticed. There is a specter haunting this economy. It is the specter of inflation… See, if you want to whip inflation now, you don’t need to do any of the really […]
Yes, The ECB Chief Economist Really Said It: “If You Print Enough Money, You Always Get Inflation. Always.”
Yes, The ECB Chief Economist Really Said It: “If You Print Enough Money, You Always Get Inflation. Always.” Once upon a time there was a cute, if amusing and terribly disingenuous debate among those who have never actually traded but pretend to know finance, about what QE and “unconventional policy” actually was. “It’s an asset […]
The Fed’s 2% Inflation Fairytale—–Who Made It Up And What Does It Mean?
The Fed’s 2% Inflation Fairytale—–Who Made It Up And What Does It Mean? Once upon a time, not too long ago, central bank wizards began telling a fairytale that economies need inflation. But not just any inflation. In their Goldilocks make-believe world, the not too hot, not too cold, just right dose of two percent […]
Today’s CPI Lesson: The Fed’s 2% Inflation Target Is Completely Stupid
Today’s CPI Lesson: The Fed’s 2% Inflation Target Is Completely Stupid The madness of the Fed’s pending 81 month run of zero interest rates comes down to an inflation subterfuge that has no logical or empirical grounding in real world economics. Essentially, the Keynesians who currently inhabit the Eccles Building have turned all of central banking’s anti-inflation history on its head, saying, […]
Modern-Day Monetary Cranks and the Fed’s “Inflation” Target
Modern-Day Monetary Cranks and the Fed’s “Inflation” Target One Bad Idea After Another Ben Bernanke is frequently in the news these days. The latest occasion concerns his opinion on the Fed’s “inflation” target, i.e., the target for the speed at which money should be debased relative to consumer goods in order to finally attain centrally […]
