Economists have stepped up their research to ascertain if disinflation has ended and how that affects the risk matrix around the economy. … READ MORE >
disinflation
CHART OF THE DAY: A key measure of future inflation implies disinflation risks
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. … READ MORE >
Monetary policy and inflation in the modern era
By adopting a flexible average inflation target, the Fed is using its most important tool — forward guidance – to infuse confidence in investors and the general public that it will do all it can to sustain the economic recovery needed in the wake of the coronavirus. … READ MORE >