The relationship between slack in labor and other core resource markets and infl...
WASHINGTON - The relationship between slack in labor and other core resource markets and inflation has “broken down,” posing risks for the Federal Reserve if it fails to lift the pace of price increases to its announced target, a top Fed official said on Thursday.
“The trend in inflation ... appears to be somewhat below the Federal Reserve’s goal of 2%,” Brainard said. “This raises the risk that households and businesses could come to expect inflation to run persistently below the Federal Reserve’s target and could change their behavior in a way that reinforces that expectation,” a difficult spiral to break.
That “opportunistic reflation,” she said, could “communicate that a mild overshooting of inflation is consistent with our goal.”
Indonesia Berita Terbaru, Indonesia Berita utama
Similar News:Anda juga dapat membaca berita serupa dengan ini yang kami kumpulkan dari sumber berita lain.
Fed’s Brainard says income inequality may be hampering U.S. economyFed Governor Lael Brainard said Friday that rising inequality could be one reason for lackluster consumer spending in the wake of the financial crisis.
Baca lebih lajut »
Opinion | Trump’s two worst economic ideas collideNeither trade wars nor Fed wars are good and easy to win.
Baca lebih lajut »
Fed’s Bostic: Higher tariffs could result in interest-rate cuts if consumer spending suffersAtlanta Fed President Raphael Bostic on Friday said the Fed might respond with interest rate cuts if consumer spending suffers in the wake of the new round...
Baca lebih lajut »
Fed's Kaplan says interest rates are about where they should beDallas Federal Reserve Bank President Robert Kaplan on Monday said that the Fed ...
Baca lebih lajut »
One-Third of Middle Class Can’t Afford $400 Surprise Expense, Fed FindsWhile economic security improved “marginally,” many U.S. citizens were still in a position of “financial fragility,” Federal Reserve governor Lael Brainard said of findings in a survey the central bank is expected to release later this month.
Baca lebih lajut »
Trump could get his Fed rate cut after all, but not for the right reasonsAs the trade war heats up, the potential for the Federal Reserve to cut interest rates is rising.
Baca lebih lajut »
Tariff tumult boosts view that Fed may cut U.S. ratesU.S. President Donald Trump's decision to jack up tariffs on goods from Chi...
Baca lebih lajut »
It's Not Technology But The Fed That Is Taking Away JobsIncome inequality is now at the same level it was in the Great Depression. One reason is a growing number of monopolies whose existence is enabled by financial engineering and monetary policy. Ben Hunt notes that the S&P 500 companies have the highest earnings relative to sales in history.
Baca lebih lajut »
Trump vs. the Fed: What it means for your moneyIn the ongoing battle between President Donald Trump and the Federal Reserve over interest rates, it's consumers that are caught in the middle.
Baca lebih lajut »
White House Considers Economist Judy Shelton for Fed BoardShelton has been contacted by the White House regarding the position, according to two people familiar with the matter who described the outreach on condition of anonymity. Trump has named four people for the two open seats on the board of governors.
Baca lebih lajut »