Topic: Inflation

Central Banking, Inflation, Monetary Policy, Sound Money Project

Inflation was Worse than We Thought

– September 30, 2023

“Although Fed officials were late to tighten monetary policy, their efforts over the last year appear to have worked. The risk today is that monetary policy is too tight—and will remain so for too long.” ~William J. Luther

Central Banking, Inflation, Monetary Policy, Sound Money Project

What Should the Federal Reserve Do Now?

– September 26, 2023

“Inflation is running above 2 percent by any measure, and a current temporarily higher rate on short-term securities can reassure markets that the Federal Reserve is aiming at a lower inflation rate.” ~Gerald P. Dwyer

Central Banking, Inflation, Monetary Policy, Sound Money Project

Another Rate Hike? Let’s Not

– September 26, 2023

“Interest rate and liquidity data point to the same conclusion: monetary policy is sufficiently tight. Further tightening could cause a painful economic contraction.” ~Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Sound Money Project

Fed Continues to Signal Another Rate Hike

– September 20, 2023

“If core inflation is more or less on track, why are most FOMC members projecting another rate hike?” ~William J. Luther

Central Banking, Economic Growth, Inflation, Monetary Policy

David Malpass on Inflation and Slow Growth

– September 16, 2023

“If we try to push supply-side economics as an inflation-reduction strategy, we’re setting ourselves up for failure by banking on a problem that’s largely solved.” ~ Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Sound Money Project

Don’t Panic over the Latest Inflation Numbers

– September 14, 2023

“To put it plainly, monetary policy is already tight enough. The Fed’s job now is to stay the course.” ~ Alexander W. Salter

Business Conditions, Economic Trends, Everyday Price Index, Inflation

AIER’s Everyday Price Index Sees Biggest Monthly Jump since January

– September 13, 2023

“Despite some improvements since the apparent peak 13 months ago, consumers and businesses are still contending with 31 months of above-trend rising prices.” ~ Peter C. Earle

Central Banking, Inflation, Monetary Policy, Sound Money Project

What’s the Harm in Raising the Inflation Target?

– September 5, 2023

“In addition to increasing workers’ real tax burden, raising the inflation target reduces workers’ real wages by reducing the demand for their labor services.” ~ Bryan Cutsinger

Central Banking, Inflation, Monetary Policy, Sound Money Project

Monetary Policy Remains Sufficiently Tight

– September 4, 2023

“There’s no returning to the pre-pandemic trend for the price level. We’re left with permanently higher prices. Hopefully, the Fed continues to bring inflation down gradually.” ~ Alexander W. Salter

Central Banking, Inflation, Monetary Policy, Taxation

The Floor System Fails

– September 4, 2023

“During normal times, when inflation is low and stable, the floor system increases the burden on taxpayers. The burden is even larger when inflation is high, as it has been over the past two years.” ~ Louis Rouanet

Economic Trends, Inflation, Monetary Policy, Sound Money Project

Why Are Mortgage Rates So High?

– September 2, 2023

“Interest rates on mortgages were 2.66 percent just two and a half years ago. Why the sudden increase in rates? The Federal Reserve increased the money supply and generated the worst inflation in many years.” ~ Gerald P. Dwyer

Central Banking, Inflation, Sound Money Project

Against a 3 Percent Inflation Target

– September 1, 2023

“If the Fed can really make such an elementary error and get away with it, a major prudential reason for keeping it around would no longer hold.” ~ Alexander W. Salter