Topic: Inflation

FOMC Holds Rates, Revises Forward Guidance

– June 12, 2024

“Just as the FOMC was slow to adjust policy when inflation surged in late 2021, it will be slow to adjust policy as inflation returns to and falls below its target in 2024.” ~William J Luther

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Prices Stable in May: Time to Cut Rates?

– June 12, 2024

“M2, the most commonly cited measure of the money supply, is up 0.53 percent from a year ago. Since real income and population are growing faster than this, current M2 growth also suggests money is tight. But this is speculative.” ~Alexander W. Salter

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Politicizing Monetary Policy Won’t Fix the Fed’s Failings

– June 10, 2024

“Even if one thinks Trump is well-suited to make interest rate decisions (and there is little reason to think he is), it does not follow that Trump’s proposed solution would improve monetary policy.” ~Nicolás Cachanosky

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Defense Manual for The War on Prices

– June 6, 2024

“The book advocates for a substantial policy shift toward minimal governmental interference, allowing market mechanisms to function unimpeded. Sadly, we are moving in the opposite direction.” ~Vance Ginn

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Inflation Continued to Decline in April

– June 1, 2024

“While inflation is declining once more, members of the Federal Open Market Committee (FOMC) have suggested rates would need to remain high for longer than they had previously projected.” ~William J. Luther

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Inflation to the Nines

– May 24, 2024

“Americans will have to decide for themselves if the claim made by Biden was a lie intended to mislead anyone not familiar with the trajectory of prices over the past several years, or an innocent error.” ~Peter C. Earle

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Business Conditions Monthly March 2024

– May 22, 2024

“We remain cautious, as economic statistics have been both volatile and reflective of highly unusual underlying conditions since pandemic policies were lifted three years ago.” ~Peter C. Earle

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April’s Disinflation Delivery

– May 16, 2024

“In the first quarter of 2024, the US economy expanded at a rate of 1.6 percent per year. That’s hardly an impressive growth rate, but it’s significantly faster than money supply growth. Money looks somewhat tight.” ~Alexander W. Salter

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AIER Everyday Price Index Rises for Fifth Consecutive Month

– May 15, 2024

“April’s core CPI data represents the lowest of 2024 and may signal the resumption of disinflation, particularly where shelter costs are concerned. Despite some favorable signs, though, there remains a persistent inflationary pressure in certain categories.” ~Peter C. Earle

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Is The Fed Manipulating the Market?

– May 15, 2024

“We cannot just look at the Fed’s target rate to determine whether it is manipulating the market. We must consider its target rate relative to the natural rate.” ~Bryan Cutsinger

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Chairman Powell and The Fed’s Limits

– May 9, 2024

“Congress should applaud Chairman Powell’s candor on uncertainty and strongly support his principle of operating the Fed within the limits of its mandate.” ~Alex J. Pollock

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Getting Monetary Policy Back on Track

– May 7, 2024

“Experts seemingly identify much more closely with the central bankers — the practitioners of monetary policy — than with those forced to contend with the negative consequences of bad decisions.” ~Judy Shelton

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