The Federal Reserve’s preferred forward-looking inflation metric -- called the five-year, five-year forward break-even inflation rate -- implies that pricing risks to the economic outlook revolve around disinflation, not inflation, over the next 10 years. The metric -- which measures the expected ... READ MORE >
disinflation
Monetary policy and inflation in the modern era
The Fed is embarking on a new era in monetary policy, switching from its point target of 2% inflation to a target range of 1% to 3%. This change is predicated on longer-run structural changes in the economy that are inherently disinflationary, a real neutral interest rate near zero and much slower growth ... READ MORE >