“People have renegotiated their wages and purchase orders with those new expectations in mind. To course correct at this late stage would amount to a very painful contraction.” ~ William J. Luther
READ MORE“The battle for 2 percent inflation has already been won. Fed officials should acknowledge and celebrate the victory.” ~ William J. Luther
READ MORE“Expectations may be rational, but this doesn’t mean they’re right. And, this doesn’t mean there won’t be hell to pay when they’re wrong.” ~ Clifford Thies
READ MORE“There’s nothing wrong with making incorrect predictions. It happens to all of us. There is something wrong with obstinacy in the face of overwhelming contradictory evidence..” ~ Alexander W. Salter
READ MORE“America’s central bank has a lot of work to do to restore its lost credibility. Nevertheless, we have reasons to be optimistic.” ~ Alexander W. Salter
READ MORE“Ninety percent of the increase in the headline index was accounted for by increases in shelter costs, with additional contributions from motor vehicle insurance and food at home prices.” ~ Peter C. Earle
READ MORE“His analysis implies the Fed could buy every financial asset in the world without causing inflation.” ~ Alexander W. Salter
READ MORE“US inflation was not always as persistently high as it has been under the Fed. Before the Fed, the purchasing power of the dollar was determined by supply of and demand for gold.” ~ Thomas L. Hogan
READ MORE“At present we continue to believe that the US will enter a recession by September 2024, but will adjust our perspectives if and when necessary as new data and facts become available.” ~ Peter C. Earle
READ MORE“There’s no way for non-market actors to direct credit more reliably than market actors. The discipline of profit and loss is essential.” ~ Alexander W. Salter
READ MORE“No matter how you slice it, real rates look sufficiently restrictive to bring down inflation. Indeed, they may be overly restrictive at this stage in the tightening cycle.” ~ William J. Luther
READ MORE“The Fed’s experiment with ‘average inflation targeting,’ which made policy even more discretionary and hence less predictable, has been a failure. It’s time for the Fed to recommit to credible price stability.” ~Alexander W. Salter
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