May 26, 2017

IT'S A DEFLATIONARY EPOCH:

U.S. inflation path since 2012 is worrisome, policymaker says (Ann Saphir and Minami Funakoshi, 5/26/17, Reuters)

The current level of U.S. prices is noticeably lower than what it would be if the Federal Reserve had delivered on its 2-percent inflation target, St. Louis Federal Reserve President James Bullard said, calling the trend "worrisome."

In slides prepared for delivery in Tokyo on Friday, the U.S. central banker said U.S. prices are now 4.6 percent below the price level path established from 1995 to 2012, when inflation was growing near the Fed's target of 2 percent each year.

The only worrisome thing is that the Fed appears intent on raising real interest rates to historically high levels.

Posted by at May 26, 2017 8:58 AM

  

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