-
ECB: Aligning Forward Guidance with New Inflation Target Framing
After the June CPI and PPI surge, the Federal Reserve does not appear to have changed its tune. The price pressures are temporary, and the labor market is still "a ways off" from the "significant further progress" necessary to reduce the bond purchases. Federal Reserve Chair Powell warned in his semi-annual testimony to Congress that inflation will likely remain elevated in the coming months before moderating. Treasury Secretary Yellen shared a similar view separately. The case for the transitional nature of the price increases stems from the narrow breadth of price increases greater than 2% (around 1/3 of the ... (full story)